RM Infrastructure Income proposes managed wind-down as Gravis trust merger scrapped
The RMII board said it “remains open” to any approaches from third parties who have not yet put forward a proposal.
After consulting with shareholders on a number of proposals for the trust's future, including a merger with another investment company, the board said in a stock exchange notice today (6 September) that a managed wind-down was in the best interest for shareholders.
RMII's board launched a strategic review of the trust in May after receiving a merger approach by another investment trust. At the time, the board noted the trust's small scale, prevailing discount to NAV and liquidity of the shares, which had restricted its ability to grow.
In August, the board announced it was in discussions with the board of GCP with the intention of agreeing a potential combination of a «material proportion of its assets to GCP Infrastructure».
RM Infrastructure Income triggers strategic review after receiving merger approach
However, RMII said today that a combination of assets with another trust had turned out to be «a much more complex process than initially envisaged», and noted «differing views» by shareholders on the merits of a potential combination against a managed wind-down.
In a separate notice, the board of GCP confirmed it had been «unable to agree» on structure and terms with RMII in respect of the RM Scheme that are «acceptable to both parties» and the discussions had been terminated.
It is expected that capital will be returned to shareholders as the underlying loans are repaid and the equity and warrant assets are realised. The board also intends to maintain its current target level of dividend until the orderly realisation begins.
The board said it planned to publish a shareholder circular by the end of
Read more on investmentweek.co.uk
