Caledonian Holdings PLC (AIM:CHP) shares jumped 35% to 0.0037p after the investment group said it will expand its stake in AlbaCo Limited through a £500,000 share-swap deal designed to strengthen ties between the two companies.
Under the agreement, Moulsdale Investments and Nevis Investments will each exchange 250,000 AlbaCo shares, valued at £1 apiece, for 6.25 billion new Caledonian shares priced at 0.0040p.
The issue price represents a 45% premium to Caledonian’s closing market price before the deal.
Once completed, Caledonian will hold 1.5 million AlbaCo shares, giving it a 5.47% interest in the business, while each of the Alba shareholders will own about 5.4% of Caledonian’s enlarged capital.
The company said the share swap enhances alignment with key AlbaCo backers and underscores its long-term commitment as AlbaCo advances its licensing and operational strategy.
The move also broadens Caledonian’s shareholder base as it refocuses on opportunities in the financial services sector.
The board confirmed that it will discontinue its quarterly investment updates, introduced under a previous management team, and instead provide regular announcements on portfolio developments and operational progress.
David Moulsdale of Moulsdale Investments said the transaction reflects confidence in both AlbaCo’s growth prospects and Caledonian’s evolving investment platform.