Caledonia Investments Completes Cancellation of 131,027 Shares at 377.38p Average Price

Single-Day Share Buyback Executed Within Tight Price Range

On 23 July 2026, Caledonia Investments plc completed a share buyback acquiring 131,027 ordinary shares through Peel Hunt LLP, a specialist financial services firm. The shares were purchased at prices ranging from 374.00 pence to 377.50 pence, with a weighted average price of 377.38 pence per share. The narrow price range indicates the repurchase occurred within a focused trading window, consistent with systematic buyback programs.

This buyback highlights Caledonia's proactive capital allocation approach. Investment trusts like Caledonia often use share repurchases to manage the premium or discount relative to net asset value (NAV). By buying shares on the open market, the company aims to enhance shareholder value, especially when shares trade below their underlying asset worth. The weighted average price of 377.38 pence reflects the economic terms achieved during this specific trading day.

Share Cancellation Lowers Outstanding Shares to 511.9 Million

Following the buyback, Caledonia cancelled all 131,027 repurchased shares, adjusting its issued share capital to 511,857,047 ordinary shares with voting rights. Each ordinary share has a nominal value of 0.5 pence and full voting privileges.

Rather than holding the repurchased shares as treasury stock, Caledonia opted for cancellation, which reduces the total share count. This reduction can increase per-share metrics such as earnings per share (EPS) and NAV per share, benefiting remaining shareholders if the company was trading at a premium to NAV at purchase. The permanent decrease in share capital reflects a structural change in the company’s equity base.

Peel Hunt LLP Facilitates Efficient One-Day Execution

Peel Hunt LLP, specialising in corporate broking and equity trading, executed the share purchase on Caledonia’s behalf. Their involvement ensured regulatory compliance and minimized execution risk by securing shares at competitive prices throughout 23 July 2026.

All 131,027 shares were acquired within a single trading day at prices between 374.00 pence and 377.50 pence, indicating a strategy focused on consistent valuation rather than a phased buyback. This approach reduces market impact and provides transparent pricing.

Capital Management Strategy and Share Premium Considerations

As an established investment trust, Caledonia employs share buybacks to manage discrepancies between share price and NAV. Buying back shares at a discount to NAV allows acquisition of assets at reduced valuations, while buybacks may be limited when shares trade at a premium to avoid value erosion.

The 23 July 2026 buyback at an average price of 377.38 pence reflects Caledonia’s valuation assessment at that time. The board likely determined this price represented fair value relative to underlying assets. Through this repurchase, Caledonia aims to boost per-share metrics, signal confidence in its portfolio, and maintain flexibility in capital structure management, supporting medium- to long-term shareholder returns.

Weighted Average Price Reflects Market Conditions on Execution Date

The weighted average price of 377.38 pence per share represents the total cost of acquiring 131,027 shares divided by the number purchased, incorporating all trades executed during the session. The price sits near the upper end of the 374.00 to 377.50 pence range, suggesting sustained demand or a preference for higher price levels during execution.

The narrow 3.50 pence spread (approximately 0.93%) indicates price stability during the buyback, possibly reflecting balanced supply and demand or a strategy to minimize market impact by evenly distributing purchases. This pricing offers investors insight into Caledonia’s valuation and capital deployment rationale on the transaction date.

Post-Cancellation Share Capital and Voting Rights Overview

After cancelling the repurchased shares, Caledonia’s issued share capital stands at 511,857,047 ordinary shares with voting rights. Each share carries equal voting power and a nominal value of 0.5 pence, though market and NAV values may differ significantly.

This reduction affects per-share financial metrics, increasing EPS, NAV per share, and dividends per share by spreading earnings and assets over fewer shares. Shareholders should monitor pre- and post-buyback disclosures to assess the trust’s underlying performance accurately.

Regulatory Disclosure Ensures Transparency of Buyback Activity

The share buyback details were disclosed via the Regulatory News Service (RNS) in compliance with UK Financial Conduct Authority regulations. This transparent reporting informs investors of material changes to share capital, including the number of shares repurchased, price range, weighted average price, execution date, and broker details.

Such disclosure prevents information asymmetry, enabling investors to make informed decisions based on complete and timely data. Caledonia’s prompt announcement supports confidence in its governance and allows stakeholders to track capital allocation and buyback progress.

Investor Contact Information for Further Inquiries

For additional information on the share buyback or Caledonia’s capital management, investors may contact Alex Pollard, Senior Assistant Company Secretary, at +44 20 7802 8080. This dedicated contact ensures efficient handling of shareholder queries and reflects best practices in investor relations.

The announcement was published on 24 July 2026, one day after the transaction, meeting regulatory requirements for timely disclosure. This enables investors to incorporate the buyback data into their analyses promptly.