Below are some comments from respected research analysts covering the Investment Trust sector. In particular they indicate how the merger is not in the best interest of existing HICL shareholders.
We expect many HICL shareholders will be left questioning the rationale of the deal.
Ewan Lovett-Turner
Numis
We think other (not private wealth managers) shareholders either want exposure to Renewables or Infrastructure, but not both.
This is a good deal for InfraRed the manager and both boards, with all members keeping their jobs.
In a scenario where the merger is approved, we would currently be inclined to have a more neutral view at best.
Iain Scouller
Stifel
This is clearly a positive deal for TRIG shareholders… the attraction for HICL is less clear.
Ashley Thomas
Winterflood
While we are generally supportive of consolidation efforts, our initial take is that this proposed merger is an unwarranted solution for both parties.
Matt Hose
Jefferies
Our initial take is that this potential transaction is much better for shareholders of TRIG, who will benefit from a lowering of portfolio risk, a likely higher rating, and the cash exit.
HICL shareholders can already buy TRIG if they want exposure to renewables.
With both funds among the largest investment companies, our view remains that both sets of shareholders are best positioned to decide their allocation between TRIG and HICL
Christopher Brown
JP Morgan Cazeonve