Gravis trusts GCP Infra and GCP Asset Backed Income end merger talks
GABI and GCP Infra had also been having discussions with the RM Infrastructure trust over a potential combination of assets, but talks were scrapped at the start of September.
In a stock exchange notice today (18 September), the GABI board said that the decision to terminate discussions came after a «significant minority of shareholders» said they were not supportive of the proposed merger.
«Whilst the board negotiated, structured and proposed the scheme considering the best interests of shareholders, the board recognises the feedback received from certain shareholders. As a consequence, it is right that we cease our discussions with GCP Infra,» said Alex Ohlsson, GABI chair.
GABI and GCP Infra had also been having discussions with the RM Infrastructure trust over a potential combination of assets, but talks were scrapped at the start of September.
Gravis trusts GCP Asset Backed Income and GCP Infrastructure agree to combine assets
GABI noted that despite the differing views in the shareholder register regarding the proposed merger, there had been a «consistent view» from investors that the trust would benefit from the introduction of a continuation vote to be held in May 2024.
The board's ordinary resolution at the AGM will be that the company continues «in its present form». If passed, a similar resolution will be proposed every four years thereafter, it said.
If the resolution does not pass, the board will put forward proposals to shareholders to amend the investment objective and policy of the trust to liquidate the portfolio and return capital to shareholders.
In the run-up to the continuation vote, GABI will use any cash resources available to it, after drawdowns of any existing commitments, to repay its
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