(Sharecast News) - UK housebuilders Barratt (BDEV) and Redrow (RDW) said they had agreed an all-share merger valuing the latter at £2.5bn.
Under the terms of the deal Redrow investors will receive 1.44 new Barratt shares for their own stock which would leave them with 32.8% of the combined group and Barratt shareholders with the remainder.
The terms also imply a premium of 27.2% to the closing price per Redrow Share of 600p on February 6.
Reporting by Frank Prenesti for Sharecast.com
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