Caledonia gets the key of the door as it shouts Bingo


#1

Originally published at: http://whichinvestmenttrust.com/caledonia-gets-the-key-of-the-door-as-it-shouts-bingo/
The family controlled trust has paid £241 million to buy Gala, the UK’s largest Bingo club chain – we look at the details and share analysis. Caledonia Investments (LON:CLDN) has agreed to buy acquire 99.5% of the shares in Gala Bingo halls, with the management retaining the remaining 0.5%. It’s buying the country’s largest chain…


#2

I think this is a pretty safe bet for a long term holding. It’s got a lot of private equity type holdings but because they own it directly you dont pay the large fees you’re normally charged with PE.

It’s quite conservative as well with all those blue chip holdings etc.

The discount is huge too, that doesn’t seem right. I know it is because the family own so much but having a family involvement as long as they’re the right type of family, the type who is in it for the long term and who aren’t profiting at other investors expense is right no? Because that is the type of family they are.


#3

Yes I think I agree with you @alexwind it is looking like a good long term investment and the discount is very attractive.

I say in the Times yesterday they were mentioned as being a bidder for the Groucho Argentinian steak chain, though they’ve pulled out because of price, but it demonstrates their interest and commitment to private equity.

Also I like investing alongside long term family investors because they have an extra incentive not to do badly due to family shame.


#4

Wouldn’t it make more sense to buy a private equity fund if that’s what you want to own and buy an equity fund if you like that.

Caledonia seems too much like a conglomerate to me with its fingers in too many pies. I’d prefer it to specialise in aras it’s good at, bne that private equity or blue chips, just make a choice guys and I’ll choose my asset allocation myself.