Caledonia Investments plc
Update to Net Asset Value
Caledonia Investments plc ("Caledonia") provides the following update to its net asset value ("NAV").
As previously announced, Caledonia's unaudited diluted NAV per share as at 31 May 2014 was 2624p. Caledonia is today providing an update to this NAV per share in relation to the current market valuation of JD.com, Inc ("JD.com"), one of China's largest online direct sales companies, which recently listed on NASDAQ. JD.com is one of the investments held within the Capital Today China Growth Fund, L.P. ("CTC Fund"), a private equity fund focused on investment in consumer, retail and internet sectors in China and in which Caledonia has a limited partner interest as part of its Funds pool.
Since its initial public offering on 22 May 2014, the price of JD.com's American Depository Shares ("ADS") has risen by over 40%, from $19 to $26.52 per ADS as at close of business on 18 June 2014. On a look-through basis, Caledonia owns 5.6m ADS in JD.com via the CTC Fund. At this level of valuation, the potential increase to Caledonia's NAV as at 31 May 2014 would be approximately £46m, some 83p per share, after taking account of fund-related deductions such as carried interest, management fees and withholding tax of 10%. This potential increase does not take account of any changes in values attributable to any of the other investments held by the CTC Fund or within the wider Caledonia portfolio.
It should be emphasised that the holding in JD.com is not tradable directly by Caledonia and that the CTC Fund is itself subject to a six month lock-in post the initial public offering (ending 22 November 2014). The overall value of Caledonia's interest in the CTC Fund is also dependent on the value changes of the other investments held within the fund.
In line with Caledonia's valuation policy, the valuation of the holding in the CTC Fund will be formally updated within Caledonia's NAV on receipt of the next CTC Fund manager's valuation (which may include any discount assessed as appropriate by the manager). It is expected that this next valuation will be reflected in Caledonia's half year NAV per share announcement as at 30 September 2014.
Caledonia Investments plc
Will Wyatt (Chief Executive)
Stephen King (Finance Director)
Tel: +44 20 7802 8080
Tel: +44 20 7353 4200
19 June 2014
The monthly reported NAV per share, together with performance statistics and information on the valuation of principal investments, is available on Caledonia's website at www.caledonia.com. Neither the contents of the company's website nor the contents of any website accessible from hyperlinks on the company's website (or any other website) is incorporated into, or forms part of, this announcement.
Further information on JD.com and the CTC Fund may be found on Capital Today China's website at www.capitaltoday.com.