Caledonia Regulatory News (CLDN)

Caledonia Investments plc

Reallocation of investment capital through reduction of holding in British Empire Securities

In accordance with Listing Rule 10, Caledonia Investments plc ("Caledonia" or the "Company") announces that, since the beginning of the year, it has sold through the market 8,545,000 ordinary shares in British Empire Securities and General Trust plc ("British Empire Securities"), the UK listed investment trust company managed by Asset Value Investors Ltd ("AVI"), realising net cash proceeds of £38.2m. The sales have been undertaken in line with the strategy set out in the Company's 2011 annual report and will initially be used to reduce bank borrowing pending reallocation to the recently established Income and Growth pool.

As a consequence of these disposals, Caledonia's holding in British Empire Securities has reduced from 12.99% to 7.65%. Further sales may be undertaken, however Caledonia continues to hold John Pennink and his team at AVI in high regard and intends that British Empire Securities will remain a core holding within the Funds pool.

The shares sold were held in Caledonia's condensed group statement of financial position at 30 September 2011 at a value of £36.1m and dividend income from them of £0.6m was included in the Company's group statement of comprehensive income for the year ended 31 March 2011.

13 February 2012

Enquiries

END