HICL Infra shares slide on TRIG merger plan
By Frank Prenesti
Date: Monday 17 Nov 2025
(Sharecast News) - HICL Infrastructure and The Renewables Infrastructure Group on Monday said they had agreed a merger to create the UK's largest listed infrastructure investment company with net assets of more than £5.3bn.
TRIG will be wound up and its assets transferred to HICL in exchange for new HICL shares and cash via a £350m liquidity package, the two companies said on Monday.
Shares in HICL slumped 8% in London trade, while TRIG stock jumped by more than 5% on the news.
"Combining two unloved investment trusts is not a guaranteed way to make them more appealing," said AJ Bell investment director Russ Mould.
"Both trusts have the same manager - InfraRed - which means some continuity. TRIG shares were trading at a 34% discount to net asset value before the news broke, and TRIG investors should be happy they're being offered a partial cash exit at a 10% discount to 30 September's NAV.
"However, the big unknown is whether HICL shareholders want exposure to a renewable energy specialist, and the share price reaction would suggest not."
There will be a partial cash option of up to £250m for TRIG shareholders and a further £100m commitment from Sun Life, which has agreed terms to provide liquidity and secondary market support for the combined company.
Assuming full take-up of the £250m partial cash option, HICL shareholders are expected to hold approximately 56% and TRIG investors around 44% of the new company, they added.
The companies said they were aiming to complete the deal in the first quarter of 2026. They said the merger was backed by their largest shareholders and would create a fund comprised of lower risk core infrastructure and assets associated with the energy transition.
Core infrastructure includes assets related to utilities, transport and communication, while TRIG's portfolio's holdings include onshore and offshore wind, and solar facilities.
Reporting by Frank Prenesti for Sharecast.com
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