There is widespread concern among institutions that this transaction is not in the interests of HICL shareholders and instead serves the interests of the manager and TRIG shareholders.
Below are some comments from a number of institutional shareholders.
It is unacceptable that the Board of HICL is pursuing a transaction which has no merit for the shareholders of HICL. The transaction demonstrably transfers value from HICL to TRIG’s shareholders, as evidenced by the relative share price performance since the announcement of the proposed combination. The Board should instead rigorously evaluate all strategic options, alongside a genuine, wide-ranging shareholder consultation, with one clear objective: delivering superior value for all HICL shareholders
Robert Naylor
Achilles Investment Trust
This deal doesn’t seem logical to me. While we support consolidation and the potential economies of scale in the investment trust sector, this proposal appears to prioritise [fund manager] InfraRed’s asset retention, rather than delivering clear benefits to HICL shareholders.
Amir Kia – Portfolio Manager
Border to Coast
We don’t own a large part of HICL, but we do object to our shareholders’ money being used to subsidise shareholders of another trust.
Peter Spiller – Founder & Co-CIO
CG Asset Management
If you are a TRIG shareholder, it might be a good deal. If you are an HICL shareholder, it is dreadful.
James Calder – Chief Investment Officer
City Asset Management
As a HICL shareholder, I do not see any upside to the merger with TRIG. If I were inclined, I could have bought TRIG independently at a cheaper rating, with the prospect of a continuation vote.
Ben Newton – Portfolio Manager
Credo Capital
We love this sector, and we want it to succeed. However, we cannot stand behind deals of this nature when both the value destruction and the lost potential value creation is too great. We urge the Boards of both companies to think again and consider our suggested improvements.
Ben Conway – Head of Fund Management
Hawksmoor Investment Management
After listening to the pitch a second time we still find no compelling reason why any HICL shareholder would be interested in this deal.
Stephen Hayde – Fund Manager
TrinityBridge
As long term shareholders of HICL we are extremely frustrated by the proposed corporate transaction. The 6 month results to end September, recently published by HICL highlight the positive progress being made operationally by the business. In our view, the merger with TRIG brings greater NAV uncertainty, greater regulatory overhang and in the short and indeed possibly long term a wider discount, which is clearly not a desirable outcome.
Luke Hyde-Smith – Co-Head of Multi-Asset Strategies
W1M Wealth & Investment Management