Cala ‘gets £600m takeover bid from China’

Shareholders of Edinburgh-based upmarket home builder Cala Group have been approached by a potential buyer from China about a possible £600 million takeover, according to a report by Sky News.

The report said privately-owned Cala was in early-stage talks with the potential buyer.

It said Cala’s biggest shareholders — Legal & General and Patron Capital — have engaged Lazard to advise them on the talks, which may not lead to a deal.

Sky quoted a Cala spokesman as saying: “Thanks to the quality of our brand and strong financial and trading performance, from time to time we may find ourselves the subject of speculation but from our perspective it is very much business as usual.”

On October 3, Cala said its revenue rose 15% to £587.1 million and profit before tax — before exceptional items — jumped 18% £60.1 million in the year to June 30.

Cala said its average selling price rose 6% to £538,000.

Cala Group chief executive Alan Brown said: “2016 has been another record year with profits topping £60 million for the first time in the group’s history.

“Despite headwinds in some of our markets, we have continued to build on the strong momentum we have generated over recent years, once again delivering robust volume and revenue growth while still achieving incremental improvements in our return on capital employed.”