- Large HICL investors said they planned to oppose £5.3bn merger with TRIG
Plans for the creation of a £5.3billlon infrastructure trust have been abandoned after a growing investor backlash.
London-listed HICL Infrastructure and The Renewables Infrastructure Group (TRIG) last month revealed a merger agreement to create Britain’s biggest infrastructure fund.
The deal was designed to bring together HICL’s portfolio spanning schools, universities, hospitals and transport projects, including the high-speed rail link between London St Pancras and the Channel Tunnel, with TRIG’s renewable energy assets such as solar power, wind farms and battery storage.
HICL and TRIG told shareholders at the time the deal would create a ‘more compelling proposition’ by offering ‘greater scale, liquidity and relevance to a broader investor base’.
But major investors in HICL opposed the plan, which they claimed was overly advantageous for TRG.
They said HICL shareholders had been ‘left to suffer’ and announced plans to vote against the deal.
And HICL said in a stock market statement on Monday that the deal would now not proceed.
It said: ‘Both boards remain convinced of the strategic rationale for the combination. However, following broad engagement with shareholders, the HICL board determined that it cannot progress the transaction without a substantial majority of support from its own investors.
‘Each company remains well positioned as an independent business, with high-quality portfolios, strong management teams, and clear strategies for delivering long-term value to investors.’
TRIG chair Richard Morse said in a separate statement: ‘Our focus now returns to delivering TRIG’s attractive standalone strategy.
‘TRIG is a well-established platform with high quality assets, a competitive pipeline of opportunities, and deep renewables and energy storage expertise.
‘We are uniquely placed to capitalise on the demand growth for low carbon, reliable power and to capture the commercial opportunities as economies across the UK and Europe electrify and decarbonise.
‘Doing so will allow us to deliver sustainable value and growth for our shareholders, with whom we will continue to engage on the path ahead.’
TRIG shares fell 3.9 per cent in early trading, while HICL shares rose 3.7 per cent.
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