Firms' anger over Crest Nicholson sale process

CONCERNS have been expressed over the sale process for Crest Nicholson, the housebuilder which was once a 50:50 venture between Scottish entrepreneur Sir Tom Hunter and HBOS.

Hugh Osmond, the tycoon behind Pizza Express and Punch Taverns, has made an approach thought be worth around 350m for the business which is now owned by a consortium of banks following a debt-for- equity swap last year.

According to sources close to the talks, Osmond's acquisition vehicle Horizon has been granted exclusivity in negotiations with advisers Morgan Stanley until the middle of June.

But a number of other housebuilders, thought to include Redrow, Galliford Try, Redrow and Persimmon, are said to be interested in acquiring Crest Nicholson.

They argue the potential synergies for a housebuilder acquiring the company could lead to a higher bid than Horizon can make and are frustrated by the exclusive talks under way.

It is understood the management of Crest Nicholson are attracted by the chance of a quick sale to Horizon although ultimately it will be the syndicate of lenders led by Lloyds Bank which makes the final decision.

Crest Nicholson was taken private in 2007 after a 1.2bn takeover by HBOS and Hunter.

However, as the housing market crashed, the investment turned sour.

Hunter's equity of around 45m was written off, as was 648m of debt and interest as banks took a 90 per cent stake in the business last January. The management of Crest Nicholson were given the remaining 10 per cent.