Caledonia Investments, the investment trust company 38% owned by the Cayzer family trust, has received court approval for a special dividend payment, which should finally lay to rest a family battle that had threatened to destroy the investment company.
The special dividend, which comes on top of the final dividend announced in May, is worth £88m, or 1,047.07p per share for those shareholders who have elected to receive the payment.
Roughly 8.4 million shares for which the special dividend has been elected are being cancelled as a result.
A reduction in capital expressed through the reduction in number of shares will boost net asset value of the remaining shares. The NAV was pegged at 1,276.91p on Friday after the close of market, according to a formula outlined when the special dividend proposal was put to shareholders.
Shares traded up 3p at 1,088p yesterday afternoon as for court approval for the capital reduction was announced.
Caledonia’s board last year rejected an application for the winding up of the investment trust company, sparked by claimants with a minority stake in the Cayzer trust.
Following argument and counter-argument, the family trust decided it would not support the proposed liquidation of the fund, which effectively killed off the idea – the proposal was formally withdrawn in October last year.
However, the dispute did force Caledonia’s board to instead propose the special dividend, details of which have been finalised with the announcement of the value of the dividend and court approval.IFAonline
What made financial headlines over the weekend?
Pensions neglect to be criminal offence
All-day event on 24 April
Consequences could be more severe than in stress tests
AFH has six segregated mandate funds