Legal & General Group Plc is in advanced talks to buy out its fellow shareholder in homebuilder CALA Group Ltd., Sky News reported March 6.
L&G is reportedly eyeing Patron Capital Ltd's stake of about 47.5% following failed attempts to auction Cala, the report said, adding that the deal would value Cala at over £500 million. The buyout could be completed in the next few weeks, the report added.
L&G and Patron took over Cala in 2013 in a deal valuing the company at £210 million, with Cala's management team retaining a small stake, the report noted. L&G and Patron have reportedly considered floating the firm, and L&G could still pursue that route as a long-term exit strategy.
Investment bank Lazard has also reportedly held talks with various prospective investors over the past year and a half, with China Evergrande Group among those said to have been involved.
Cala's business is focused on areas outside London and the South East, including the Home Counties region of England and the Scottish cities of Edinburgh, Glasgow and Aberdeen, Sky wrote.
