Shareholders club together to try to stop investment trust merger
Investors call for a U-turn on the proposed merger between HICL Infrastructure and The Renewables Infrastructure Group.
25th November 2025 10:03
by Dave Baxter from interactive investor
A group of shareholders in HICL Infrastructure PLC Ord (LSE:HICL) have banded together to oppose its proposed merger with Renewables Infrastructure Grp (LSE:TRIG).
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CG Asset Management, which runs the Capital Gearing Ord (LSE:CGT) portfolio, has sent a letter signed by multiple other investors to HICL chair Mike Bane, urging the board to abandon the proposed tie-up.
The letter argues that the deal undervalues HICL’s assets relative to TRIG’s, that TRIG’s recent net asset value (NAV) does not account for the impact of a proposed change in renewable subsidies, that the merger does not generate material cost savings and that it would help TRIG’s manager (InfraRed, which manages both HICL and TRIG) avoid a continuation vote due in 2026, among other issues.
“In summary, it appears the principal beneficiary of this proposal is the manager, the second beneficiary are the shareholders of TRIG. Shareholders of HICL are left to suffer,” the letter said.
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CG added: “We also believe that the tight timeline and lack of consultation (beyond a small number of larger shareholders, who are mostly conflicted) means that the views of minority and retail shareholders have not been taken into account.
“This is particularly significant given that many retail shareholders may lack the capacity, time or information to vote their shares at such short notice. We would urge you to abandon this proposal.”
HICL said: “We continue to engage with shareholders and are listening to their views. We remain committed to the view that the proposed transaction is underpinned by a compelling strategic rationale.
“It will unlock significant long-term value through increased diversification, liquidity and access to opportunities that will come from the creation of UK’s largest listed infrastructure investment company.”
The letter is signed by a handful of other professional investors, from wealth managers Albert E Sharp, EQ Investors and Hawksmoor Investment Management to Achilles Investment Company Ord (LSE:AIC), which launched as an activist vehicle focused on investment trusts.
HICL and TRIG have previously noted that the idea of a merger had met with “a positive market sounding with large shareholders of both companies”. But the unveiling of those plans caused HICL’s shares to fall, and TRIG’s to rise.
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