Caledonian Holdings Invests in Scottish SME Lender AlbaCo
Why we think this is neutral
This RNS announcement is about Caledonian Holdings making an investment in AlbaCo Limited, a new bank focused on lending to small and medium-sized businesses in Scotland and the UK regions. While the investment represents Caledonian's first move into the financial services sector, the announcement does not contain any of the mandatory news types that would warrant a stronger sentiment score.
Key Points
- Caledonian Holdings to invest £1,000,000 in AlbaCo Limited
- £750,000 cash investment and £250,000 share swap
- AlbaCo aims to be Scotland's first bank dedicated to SME lending
- Caledonian Holdings' first investment in financial services sector
Summary
Caledonian Holdings PLC (AIM:CHP) has conditionally agreed to invest an aggregate of £1,000,000 in AlbaCo Limited, a new bank focused on lending to small and medium-sized businesses in Scotland and the wider UK regions. The investment includes a £750,000 cash investment and the intention to acquire £250,000 worth of AlbaCo shares through the issue of new Caledonian Holdings shares. This represents Caledonian Holdings' first investment in the financial services sector following a change in its investing policy earlier this year.