LONDON (dpa-AFX) - Barratt Developments plc (BDEV.L) has reached a 2.5 billion pounds deal to buy Redrow Plc. (RDW.L). The combined Group will be renamed as 'Barratt Redrow plc'.
As per the terms of the merger, each Redrow Shareholder will receive 1.44 New Barratt shares for each Redrow share. Redrow Shareholders will, in aggregate, receive about 476.31 million New Barratt Shares.
On the basis of the closing price per Barratt Share of 530 pence on 6 February 2024, the terms of the Combination imply a value for the entire issued and to be issued ordinary share capital of Redrow of about 2.52 billion pounds and represent a premium of about 27.2 per cent to the closing price per Redrow Share of 600 pence on 6 February 2024.
Immediately following Completion, Redrow Shareholders will hold approximately 32.8 per cent. of the Combined Group and Barratt Shareholders will hold approximately 67.2 per cent. of the Combined Group.
Caroline Silver, Barratt's Non-Executive Chair, will lead the Combined Group as Non-Executive Chair. Barratt's Chief Executive, David Thomas, will be Group Chief Executive of the Combined Group. Mike Scott, Chief Financial Officer of Barratt, will be Chief Financial Officer of the Combined Group, and Steven Boyes, Chief Operating Officer and Deputy Chief Executive of Barratt, will be Chief Operating Officer and Deputy Chief Executive of the Combined Group.
Any executive or non-executive directors of Redrow not appointed to the board of the Combined Group will step down from the Redrow board upon Completion.
Subject to the satisfaction or waiver of the Conditions, the Combination is expected to become Effective during the second half of 2024.
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