LONDON: British infrastructure investors HICL Infrastructure PLC (HICL.L) and The Renewables Infrastructure Group TRIG.L agreed to combine on Monday, forming the UK’s largest listed infrastructure investment company with net assets exceeding £5.3 billion ($6.7 billion).
The all-share merger, structured as a reconstruction and voluntary winding-up of TRIG, aims to create a dominant player better positioned to capitalise on the convergence of traditional infrastructure and the energy transition. The combined entity will have an initial dividend target of 9.0 pence per share and target a net asset value (NAV) total return of over 10% per annum.
“The combination of HICL and TRIG represents a unique opportunity to capture the key megatrends shaping the infrastructure market today,” said Mike Bane, Chair of HICL.
The deal comes as listed investment funds face pressure from investors seeking greater scale, liquidity, and exposure to long-term structural trends like decarbonisation and digitalisation.
Under the terms of the deal, TRIG shareholders will receive new HICL shares based on the respective NAVs of both companies as of September 30, 2025. Based on the latest published figures, the illustrative exchange ratio is 0.714173 of a HICL share for each TRIG share.
TRIG shareholders will also have the option to elect for a partial cash exit of up to £250 million. Sun Life, the parent company of the firms’ shared investment manager InfraRed Capital Partners, has committed to providing £100 million in secondary market support for the combined company.
The merged group is expected to be 56% owned by HICL shareholders and 44% by TRIG shareholders, assuming full take-up of the cash option.
InfraRed will remain as the investment manager for the combined company, while Renewable Energy Systems (RES) will continue to manage the renewables assets. Both have agreed to revised, reduced fee structures.
The boards of both companies have recommended the deal, which is subject to shareholder and regulatory approvals. A completion date is targeted for the first quarter of 2026.
($1 = 0.7895 pounds)