TAYLOR Wimpey has withdrawn from the competition for CALA Homes following its initial proposal being rejected by Legal & General, which remains optimistic about the potential value of its property development business, expecting it to reach at least £1 billion.
Taylor Wimpey, a leading construction company in the UK, is believed to have submitted a proposal during the initial bidding stage.
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Persimmon, another company listed on the FTSE 100 index, is still in contention, having advanced to the second stage of the competition, but it will need to enhance its initial proposal, which has been deemed “a bit underwhelming” by a source in The Times.
“Private equity firms are still the preferred choice as they have the financial resources, whereas a company looking to trade would need to provide both equity and cash,” the insider mentioned.
Patron Capital, which has sold a significant portion of CALA Homes to Legal & General in 2018, is still in negotiations. Bridgepoint, TDR Capital, and Terra Firma are among the private equity firms that have shown interest in CALA Homes, but their interest appears to have waned.
CALA Homes dates back to 1875 and is currently fully owned by Legal & General, the insurance firm.
Legal & General announced last month that it was considering offers for CALA as part of its strategy to streamline its operations under the leadership of António Simões, the insurer’s new CEO.