Caledonia offloads Buzz Bingo for ‘Nominal’ amount
Caledonia Investments has sold its shareholding in Buzz Bingo to Intermediate Capital Group for a nominal amount.
The Covid-19 crisis and the severe restrictions imposed by the Government on leisure sector businesses have led to Buzz’s clubs being unable to trade for much of the past 12 months.
Buzz Bingo was refinanced in the summer of 2020 as part of a company voluntary arrangement, in which Caledonia invested £22m. However, the third national lockdown has resulted in a further requirement for new capital.
Caledonia, having carefully assessed the available investment opportunity, chose not to participate in the latest fundraising and has sold its shares to ICG which, together with Barclays, have provided further capital to Buzz Bingo. The investment was valued at nil in Caledonia’s most recent net asset value statement as at 28 February 2021.