By Abigail Townsend
Date: Tuesday 28 May 2024
LONDON (ShareCast) - (Sharecast News) - Persimmon saw its share price dip on Tuesday, after it was flagged as a potential buyer of rival housebuilder Cala.
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.
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Currency | UK Pounds |
Share Price | 144.00p |
Change Today | 0.000p |
% Change | 0.00 % |
52 Week High | 152.40 |
52 Week Low | 99.70 |
Volume | 0 |
Shares Issued | 3,539.84m |
Market Cap | £5,097m |
Value |
---|
Price Trend |
---|
Income |
---|
Growth |
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Strong Buy | 6 |
Buy | 5 |
Neutral | 5 |
Sell | 0 |
Strong Sell | 0 |
Total | 16 |
Latest | Previous | |
---|---|---|
Final | Interim | |
Ex-Div | 28-Mar-24 | 12-Oct-23 |
Paid | 10-May-24 | 17-Nov-23 |
Amount | 4.79p | 4.79p |
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