RM Infrastructure Income PLC on Friday said net asset value fell as first half profit ticked down, while it considers a proposal for a potential partial combination as part of evaluating its future strategy.
The London-based investor in loans to infrastructure assets said net asset value per share on June 30 fell to 91.68 pence from 93.68p a year earlier.
Shares in RM Infrastructure were down 3.9% to 68.00p each in London on Friday morning.
In the first half of 2023, pretax return ticked down to £2.9 million from £3.0 million a year earlier.
Income narrowly ticked up to £5.5 million from £5.4 million, while losses on investments narrowly widened to £936,000 from £929,000.
RM Infrastructure kept dividend payments for the first half steady from a year earlier at 3.25p.
Looking ahead, RM Infrastructure said the board is currently assessing a proposal from GCP Infrastructure Income Ltd regarding a potential partial combination with RM Infrastructure. This would be in conjunction with its proposed merger with GCP Asset Backed Income Fund Ltd.
This was part of the company evaluating its future strategy and follows consulting ‘widely’ with shareholders and receiving various approaches from third parties as an alternative to a managed wind-down.
‘Once the proposal has been assessed in full, including further consultation with our shareholders, the board will make an announcement on the future course of the company,’ said Chair Norman Crighton.
‘We expect that whatever decision is made on the future of the company will be in the best interests of our shareholders as a whole and any proposals tabled will be put to a shareholder vote.’
On Friday last week, GCP Infrastructure Investments and GCP Asset Backed Income Fund said that they aim to merge with RM Infrastructure.
The companies said the proposed merger of the GCP companies would be via a contractual reconstruction scheme resulting in the solvent winding-up of GCP Asset Backed Income and the transfer of its assets to GCP Infra. The number of GCP Infra shares issued to GCP Asset Backed shareholders will be determined on a formula asset value for formula asset value basis.
GCP Infrastructure expects that the plans ‘will bring benefits to both the existing and any new shareholders in the company.’ It added that following the completion, there will be an increased return of capital to shareholders with GCP Infrastructure reducing its leverage.
GCP Infrastructure said that under the plan to merge with GCP Asset, it will commit to spending £200 million on the enlarged portfolio. £100 million will be used to reduce GCP Infrastructure’s leverage to a target drawn balance of £50 million. £100 million will be distributed to shareholders via share buybacks, special dividends or other ways.
The planned combination requires approval from regulators and shareholders of the companies. The GCP companies expect to merge before the end of 2023.
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