Caledonia Investments plc Completes Cancellation of 122,410 Shares at 380.50p Average Price

Details of Caledonia Investments’ Share Buyback and Cancellation

Caledonia Investments plc announced the completion of a share repurchase programme on 20 July 2026, acquiring 122,410 ordinary shares of 0.5 pence nominal value each through its broker Peel Hunt LLP. The shares were purchased throughout the trading day at varying prices, reflecting prevailing market conditions and execution methods.

The transaction’s pricing showed a tight range, with the lowest price paid at 378.00 pence and the highest at 381.00 pence per share. The weighted average price was 380.50 pence per share. This pricing provides investors insight into the management’s valuation of the shares relative to the company’s net asset value during the buyback.

Effect on Issued Share Capital After Cancellation

Following the repurchase and cancellation, Caledonia’s issued share capital has been reduced to 512,210,320 ordinary shares with voting rights. This reduction is a significant corporate action impacting the company’s equity structure, influencing earnings per share and voting power distribution among shareholders.

Share cancellation is a common capital management practice among listed investment companies. By reducing the number of shares outstanding, Caledonia effectively increases the ownership percentage of remaining shareholders who retain their holdings, potentially enhancing per-share metrics and returning value to shareholders when shares are repurchased below intrinsic value.

Caledonia Investments as a Listed Investment Company

Operating as a listed investment company, Caledonia manages a diversified portfolio aimed at capital growth and income generation for shareholders. Unlike operational businesses, its share price and net asset value are influenced by the performance of its investment holdings and market valuations.

Share repurchase programmes are strategic capital management tools for investment companies like Caledonia. When shares trade at a discount to net asset value, repurchases can increase value for remaining shareholders by reducing the share count participating in the asset base. Management’s timing and volume of such buybacks reflect their valuation perspective.

Execution Through Peel Hunt LLP Amid Market Stability

The buyback was conducted through Peel Hunt LLP, the company’s broker, ensuring liquidity and expert execution. The purchase occurred within a single trading day, 20 July 2026, with prices ranging narrowly from 378.00 pence to 381.00 pence, indicating stable market conditions and efficient execution without significant price volatility.

Regulatory Compliance and Disclosure Transparency

Caledonia’s announcement complies with UK regulatory requirements for listed companies to disclose share repurchases, detailing the number of shares bought, price ranges, average price, and impact on issued share capital. These disclosures ensure shareholders receive timely, material information about the company’s capital structure changes.

Providing exact pricing details enables investors and analysts to evaluate the quality of execution and assess whether shares were repurchased at valuations consistent with market conditions. Updated issued share capital figures allow accurate calculation of per-share metrics such as earnings per share and net asset value going forward, supporting market transparency and shareholder protection.

Ordinary Shares with 0.5 Pence Nominal Value

Caledonia’s ordinary shares carry a nominal value of 0.5 pence each, significantly lower than the market repurchase price. This reflects the difference between accounting par value and market valuation, where nominal value serves registration purposes and market price reflects investor demand and asset value.

The 122,410 repurchased shares represent a small fraction of total issued capital. Their nominal value totals approximately 612.05 pence (122,410 shares × 0.5 pence), whereas the cash cost of repurchase was around £466,201 at the weighted average price. This disparity underscores the economic value attributed to Caledonia’s investment portfolio.

Share Cancellation Versus Treasury Stock Strategy

The company chose to cancel the repurchased shares rather than hold them as treasury stock. Cancellation permanently reduces issued share capital and requires new shareholder approval to reissue shares, unlike treasury shares which can be reissued or used for employee schemes without fresh approvals.

This cancellation approach signals Caledonia’s commitment to permanent capital reduction, typical of mature investment companies focusing on returning capital to shareholders and simplifying capital structure, thereby delivering immediate and lasting per-share accretion assuming repurchases occurred below intrinsic value.

Investor Implications and Share Price Considerations

For Caledonia shareholders, the repurchase programme may be beneficial, especially if shares were trading below net asset value at the time. Buying and cancelling shares below intrinsic value increases remaining shareholders’ ownership and per-share asset entitlement without additional investment.

While the announcement does not detail share price performance or market sentiment at repurchase, management’s decision to buy at approximately 380.50 pence suggests this was viewed as an attractive valuation. Investors typically compare repurchase prices against net asset value and historical prices to evaluate the accretive nature of such capital management actions.

Contact Details and Announcement Timing

The announcement was issued on 21 July 2026 by Alex Pollard, Senior Assistant Company Secretary at Caledonia Investments plc. Enquiries can be directed to +44 20 7802 8080. The disclosure was made promptly, one day after the share buyback execution on 20 July 2026, ensuring timely market communication.

Investors seeking further information on Caledonia’s portfolio or capital management can contact the company directly using the provided details. The company maintains investor relations functions to facilitate shareholder engagement and provide updates on performance, strategy, and governance.