Crest Nicholson has attracted fresh takeover interest after rejecting a possible offer from rival housebuilder Bellway, as the housing sector was boosted by a Labour election victory.
The Surrey-based company is understood to have been approached by Avant Homes last month.
As first reported by Sky News, Avant made an all-share proposal to Crest to combine the two housebuilders, but the offer was rejected by its board.
Avant – an affordable housebuilder focused on the Midlands, the North of England, and Scotland – is backed by US investment firm Elliott Advisors.
Elliott came to the fore earlier this year when it swooped in with multiple proposed offers to buy British electricals giant Currys, all of which were rejected by the retailer.
Crest Nicholson last month said it had rejected a string of offers from competitor Bellway, including one worth £650 million.
The housebuilder said it felt the offers undervalued it and its future prospects.
Avant’s proposal is understood to represent a 20% premium to Bellway’s 253p per share offer, as the firm jostles to put a more attractive offer on the table.
Crest did not comment on the latest takeover reports.
Meanwhile, London-listed housebuilders enjoyed a boost to their share price on Friday after overnight election results revealed that the Labour Party had achieved a landslide victory at the polls.
One of the party’s key campaign pledges was to reform the planning system to build 1.5 million new homes in the next parliament.
Investors were eager to cash in on the likely lift the plans will bring builders, with Persimmon, Vistry, Taylor Wimpey and Barratt Developments the biggest risers on the FTSE 100 on Friday.
Shares in FTSE 250-listed Crest Nicholson were about 4% higher on Friday afternoon.