Caledonia Investments seeks to narrow NAV discount

Published 2024-12-11, 08:24 a/m

LONDON - Caledonia Investments PLC (LSE:CLDN), a British investment trust, is currently trading at a significant discount to its net asset value (NAV), according to a recent update. Despite a narrowing of the share price discount to NAV during the six-month period ending September 30, 2024, subsequent market volatility has widened the gap, leaving the company with a 37.9% discount.

The board of Caledonia Investments contends that the share price does not reflect the true value of its portfolio and its historical performance. As part of its strategy to address this issue, the company is proposing the continued use of NAV-accretive share buybacks, subject to shareholder approval. This approach is supported by consultations with large independent shareholders.

The company's interim results, released on November 26, 2024, initially showed a favorable reduction in the NAV discount. However, the discount has since increased again due to market reactions to the UK budget and the US election.

Caledonia Investments is encouraging its shareholders to approve the measures that would allow for further share buybacks, which are seen as a method to enhance shareholder value and reduce the NAV discount. This initiative is part of a broader effort by the company's board and management to correct the market valuation discrepancy.

This information is based on a press release statement distributed by Reach, a non-regulatory press release service of RNS, part of the London Stock Exchange (LON:LSEG).

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.