Former Cala Group co-owner joins bidding for UK’s top privately owned housebuilder
Patron Capital Partners, previously a majority stakeholder in Cala Group, has emerged as a contender in the race to acquire the renowned British housebuilding company. The bidding process, which is being led by financial services giant Legal & General (L&G), has reportedly attracted interest from several other parties as well.
Sources close to the matter have revealed that Patron Capital, along with London-listed housebuilder Persimmon, is in the running to acquire Cala. However, it is said that private equity firm Bridgepoint’s interest in the company has cooled in recent weeks. At least one other buyout firm is also said to be in contention.
This development comes on the heels of L&G’s new CEO, Antonio Simoes, confirming the company’s plans to sell Cala. Simoes outlined this move as part of a larger effort to streamline L&G’s operations. However, this announcement did not sit well with investors, leading to a 5% decline in L&G’s shares.
Industry analysts anticipate Cala to be valued at around £1bn, and it is unlikely that L&G will proceed with the sale if the price falls significantly below this figure. The ongoing bidding process has taken place against the backdrop of the UK’s general election, where both major political parties have promised to deliver at least 1.5 million new homes in the next parliament.
If another major housebuilder acquires Cala, it would further solidify the trend of consolidation in the industry. This comes after Barratt Developments recently announced a £2.5bn acquisition of rival company Redrow.
Neither Patron Capital nor L&G have commented on this matter.