RM Infrastructure Income rules out cash exit as merger talks continue

investmentweek.co.uk:

The board revealed it has also received two other proposals, one of which is under consideration but remains at an early stage.

The board of the £127m trust triggered a strategic review of the company in May, following receipt of a merger approach by another investment trust.

In a consultation with major shareholders, RMII set out the following options: a continuation under the existing policy; a partial or full exit opportunity as and when investments mature; a merger with another investment company or a managed wind-down.

In a stock exchange update today (10 July), the board said shareholders were «overwhelmingly supportive of the company's management and performance, as well as its investment focus and strategy».

RM Infrastructure Income triggers strategic review after receiving merger approach

However, it noted its small scale «created challenges in generating improved liquidity in the company's shares and restricted the company's ability to grow». According to the board, a partial exit opportunity would only «exacerbate» such issues.

RMII said progress to potentially merge assets with another trust or fund remains limited, as it has not received any further details on the non-binding indicative proposal it received in May. 

However, the board revealed it has also received two other proposals, one of which is under consideration but remains at an early stage. 

New infrastructure income trust targets £300m IPO

«The board remains conscious of the size of the company, the discount to which its shares trade at and the need to maximise shareholder value and the board expects to put forward proposals regarding the future of the company as soon as possible,» it said.

In a research note, Winterflood said it commended