(Bloomberg) -- Crest Nicholson Holdings Plc has rejected a bid from rival Avant Homes, marking the UK builder’s second takeover approach in as many months.

Avant made a merger offer on the basis of net asset value, with a shareholder ratio of roughly 70/30 in Crest Nicholson’s favor, according to a person familiar with the matter. This effectively represents a premium of about 20% to Bellway Plc’s offer of 253 pence per share in May — which valued the firm at about £650 million ($831 million), the person said.

The board “concluded it was not currently minded to engage in discussions regarding a potential transaction with Avant while in an offer period in relation to a possible all-share offer from Bellway,” Crest Nicholson said in a separate statement on Friday. The board sent a letter to Avant on June 27 setting out its decision.

Bellway has until July 11 to announce a firm intention to make an offer or to confirm it does not intend to.

The past year has been turbulent for the nation’s developers as higher interest rates deterred buyers, increased their cost of capital and depressed their share prices. With sentiment slowly improving on expectation of lower interest rates, the sector is seeing an uptick in consolidation attempts.

A representative for Avant Homes declined to comment.

Barratt Developments Plc agreed to buy rival Redrow Plc earlier this year in a proposal that would create the UK’s biggest homebuilder. The combination, which still needs regulatory approval, would give Barratt access to Redrow’s vast land bank just as the newly elected Labour Party pledges to increase housing output in the next parliament. 

It’s unclear whether Avant Homes will make a follow-up bid, but any successful offer would lead to the company remaining listed as Crest Nicholson, creating one of the UK’s largest homebuilders, the person said. Avant Homes is owned by investment firm Elliott Advisors and is run by former Persimmon Plc Chief Executive Officer Jeff Fairburn.

Sky News reported the offer earlier. 

(Updates with comment from Crest Nicholson in the third paragraph)

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