According to news reports, US-based investor Sixth Street has emerged as the front-runner to acquire Cala, one of the top 10 housebuilders in Britain.
Sixth Street has partnered with Cala’s previous owner, Patron Capital Partners, and should acquire a larger stake in the business should their offer be accepted.
This past weekend, an industry insider revealed that a takeover of Cala would probably fetch a price tag of between £1.2 billion and £1.3 billion, which is more than earlier projections.
However, they issued a warning, stating that L&G and its Rothschild advisors were still in contact with FTSE-100 housebuilder Persimmon and were optimistic about obtaining it.
It’s expected that L&G will make a statement this week.
Cala had been targeted for sale, according to Antonio Simoes, the recently appointed L&G CEO and a senior executive at Santander and HSBC.
He described the change along with several other initiatives to streamline the business.
The Cala auction closes in the middle of a rush of corporate activity related to the housebuilding industry.
Recently, Bellway pulled out of a bid for Crest Nicholson, while rival Redrow is being acquired by Barratt Developments for £2.5 billion.
Sixth Street has been contacted for comment; L&G and Rothschild declined to comment.
