Bids for troubled housebuilder from array of potential buyers are blocked by Horizon agreement

Suitors looking at troubled housebuilder Crest Nicholson have warned that they are being prevented from making offers for the company because of an exclusivity agreement that prevents them from entering the takeover process.

According to a report in the Telegraph, the agreement was inserted when Horizon, Hugh Osmond’s acquisition vehicle, made an approach of around £350m for Crest Nicholson. The agreement is thought to stand until the middle of June, while talks continue.

Other potential bidders, thought to include Galliford Try, Redrow, Persimmon and hedge fund Toscafund, are said to be frustrated by the move, which is stopping them from entering negotiations.

Crest Nicholson is 90% owned by a consortium of banks after a debt-for-equity swap last year. Lloyds Banking Group, the state-backed bank, owns around 20%, meaning a bidding war for the company could reward taxpayers.