Caledonia Investments has announced that it has reduced its holding in Cobehold SA (Cobehold) from 8.7% to 5.4%, realising €58.2m. As a result of a forward foreign exchange contract previously put in place to hedge the proceeds from the anticipated sale, Caledonia says it will receive £50.6m. Cobehold is the holding company of Cobepa SA, a Belgian unquoted investment company.
Cobehold sale is to existing shareholders
Caledonia Investments says that the sale was effected through an annual internal trading round, operated by Cobehold, and all of the shares sold were therefore taken up by other Cobehold shareholders. Caledonia Investment’s remaining 5.4% stake in Cobehold is valued at €93.2m (£81.8m). The sale price was based on the same local currency valuation of Cobehold as used for Caledonia’s reported net asset value as at 31 March 2017.
About Caledonia Investment’s holding in Cobehold
Caledonia Investments has been a shareholder in Cobehold since 2004. Will Wyatt, Caledonia’s Chief Executive, says that, “Its success over the past thirteen years has contributed to Cobehold now being [Caledonia’s] largest investment and today’s sale has been undertaken to adjust its balance within Caledonia’s unquoted portfolio”. He also says that Caledonia remains a supportive shareholder in Cobehold and that they are confident that Cobehold’s strong management team and distinctive investment approach, which he says is focused on long term value creation, very much complements oClaedonia’s own business model, and will continue to deliver rewards for Caledonia.
Caledonia reduces holding Cobehold realising €58.2m : CLDN