Caledonia Regulatory News (CLDN)

CALEDONIA INVESTMENTS COMPLETES THE ACQUISITION OF GALA BINGO

On 26 October 2015, Caledonia Investments plc ("Caledonia") announced (under RNS number 3369D) that it had agreed to acquire Gala Bingo Holdings Limited ("Gala Bingo"), the UK's largest retail bingo operator, from Gala Coral Group Limited, in a transaction which valued the business at £241m. The acquisition was conditional on change of control approval by the Gambling Commission, which Caledonia is pleased to advise has now been granted. Accordingly, the transaction has been completed.

Caledonia has invested £92.3m in cash for 98.9% of Gala Bingo's equity. The slight variances from the amounts previously announced have arisen from closing balance sheet adjustments and a higher equity subscription from the management team. The balance of the acquisition costs has been funded by a £155m senior debt facility provided by Intermediate Capital Group plc.

21 December 2015

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Notes for editors:

Caledonia Investments plc

Caledonia is a self-managed investment trust company listed on the London Stock Exchange with net assets of approximately £1.6bn as at 30 November 2015. The company maintains a concentrated portfolio of international quoted, unquoted and fund investments and has paid an increasing annual dividend for 48 years.

In the unquoted arena, Caledonia seeks to invest £25m to £100m in private companies, either on a majority or minority basis, providing a meaningful presence and growth capital supporting double-digit operating margins. In addition to Gala Bingo, its current unquoted portfolio includes Park Holidays (a UK caravan parks operator), Cobehold (a European unquoted investment house), The Sloane Club (a London residential club), Choice Care Group (a UK learning disability care homes provider) and Seven Investment Management (a provider of discretionary fund management, asset management and self-invest platform services).

For additional information on Caledonia, please visit www.caledonia.com.

Gala Bingo

Formed in 1991, Gala Bingo is the UK's largest retail bingo operator with a 38% market share. Headquartered in Nottingham, it has operates 130 clubs throughout the UK and has over 1.1 million active members, being customers who have visited a club within a 52 week period.

Gala Bingo's principle revenue streams are Main Stage Bingo (structured lunchtime and evening sessions centred on a 90 number based game), Party Xtra (a quicker 80 number game played in the intervals between MSB games), electronic gaming machines and food and beverage.

For additional information on Gala Coral and Gala Bingo, please visit www.galacoral.co.uk.

Neither the contents of Caledonia's nor Gala Coral's websites, nor the contents of any website accessible from hyperlinks on these websites (or any other website) is incorporated into, or forms part of, this announcement.