Legal & General Group (LON:LGEN) has inked a deal to acquire the 52.1-percent stake in Cala Homes it does not already own, the blue-chip company has said. The FTSE 100 group has agreed to pay about £315 million for the UK housebuilder.
Legal & General’s share price has slipped into the red in today’s session, having given up 0.49 percent to 262.10p as of 10:18 GMT. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index currently standing at 7,215.32 points, flat in percentage terms. The group’s shares have added some five percent to their value over the past year, as compared with about a two-percent drop in the Footsie.
L&G snaps up all of Cala Homes
Legal & General announced in a statement today that its Capital division had acquired the 52.1 percent of CALA Homes which it did not previously own. The acquisition cost was £315 million plus additional transaction costs and financial adjustments. The FTSE 100 group explained that the business had performed strongly under our joint ownership with Patron Capital Partners, with revenues having grown from £241 million in 2013 to £748 million last year, and profits having surged 12 percent over the last three years.
“Legal & General is delighted to assume full ownership of Cala Homes, a growing business which we know and understand well,” Kerrigan Procter, chief executive officer of L&G Capital, commented in the statement.
Analysts on blue-chip group
Numis Securities lifted its rating to Legal & General to ‘add’ last week, hiking its price target on the shares from 125p to 305p, while JPMorgan Chase & Co reaffirmed its ‘underweight’ stance on the company, valuing the shares at 218p. According to MarketBeat, Legal & General currently has a consensus ‘hold’ rating and an average price target of 264.44p.