Persimmon eyes up possible £1bn Cala bid - report
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Persimmon saw its share price dip on Tuesday, after it was flagged as a potential buyer of rival housebuilder Cala.
FTSE 100
8,204.44
09:15 01/07/24
FTSE 350
4,518.60
09:15 01/07/24
FTSE All-Share
4,474.43
09:15 01/07/24
Household Goods & Home Construction
13,158.55
09:15 01/07/24
Legal & General Group
229.20p
09:15 01/07/24
Life Insurance
5,744.45
09:14 01/07/24
Persimmon
1,361.50p
09:14 01/07/24
Taylor Wimpey
143.95p
09:15 01/07/24
Parent Legal & General Group is understood to be looking to auction off Cala, with a bid deadline expected this week.
The business, which specialises in building new homes across the south of England, the Midlands and in Scotland, is likely to fetch a price tag of around £1bn. It generated gross profits of £258m in 2022 on revenues of £1.32bn.
According to Sky News, citing unnamed City sources, Persimmon - which has a market capitalisation of around £4.6bn - is mulling a potential bid. If successful, it would be the blue chip’s biggest deal for several years.
However, analysts believe other bidders could also emerge, including potentially Taylor Wimpey and privately-owned Avant Homes.
Neither L&G nor Persimmon have commented on the report.
As at 0915 BST, shares in Persimmon were off 2% at 1,449.25p, while L&G shares were up 1% at 250.9p.
Life insurer L&G, which took full control of Cala in 2018, is understood to have appointed Rothschild to oversee the auction.