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Legal & General's Capital Unit Buys Remaining 52.1% Stake In CALA Homes

Legal & General Group Plc. (LGEN.L) announced Tuesday that its Legal & General Capital division has acquired the 52.1% of CALA Homes which it did not previously own.

The total valuation of 100% of the equity in CALA Homes was 605 million pounds, while the cost for the 52.1% stake was 315 million pound plus additional transaction costs and financial adjustments.

The transaction announcement and completion occurs simultaneously.

The company noted that the business has performed strongly under its joint ownership with Patron Capital Partners, with revenues growing threefold to 748 million pounds in 2017 from 241 million pounds in 2013.

According to Legal & General, CALA Homes has attractive growth prospects under its continued ownership based on Legal & General Capital's long term approach to investing and the attractive market for housebuilding in the UK.

Legal & General reported operating profit before tax for its 47.88% stake in CALA Homes in 2017 of 42.5 million pounds. The company noted that the operating profit before tax would have been 91.5 million pounds in 2017, assuming full ownership.

Alan Brown, Chief Executive of CALA Homes, said, "Today's investment by Legal & General marks the start of another exciting new chapter for CALA Homes and is a fantastic endorsement of our growth potential from one of the UK's most highly-respected, blue-chip investors who shares our long-term vision."

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