GCP Infrastructure - Update from QuotedData
21st August 2023
Merger to unlock compelling value?
GCP Infrastructure Investments (GCP) has announced a potential three-way merger between it, GCP Asset Backed Income (GABI), and RM Infrastructure Income (RMII). As we explore in this note, this has the potential to address some of the issues that may have given rise to GCP's exceptionally wide share price discount to its NAV.
Following a period of impressive NAV growth through 2022, GCP's half-yearly report for the six months ending 31 March 2023 and the recently published end-June NAV showed a period of consolidation for the fund, as falling energy prices and higher discount rates (the rates used to discount GCP's future cashflows to calculate its NAV) have weighed on returns. GCP has moved to trade on a 34.3% discount to NAV and a 9.8% dividend yield. Despite this, the underlying performance of GCP's assets has continued to improve.
The outlook for investors remains as promising as ever thanks to a broad range of supportive conditions.
Full Research:
https://quoteddata.com/research/gcp-infrastructure-merger-unlock-compelling-qd/
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NB: Marten & Co was paid to produce this note on GCP Infrastructure Investments Limited and it is for information purposes only. It is not intended to encourage the reader to deal in the security or securities mentioned in this report. Please read the important information at the back of this note. QuotedData is a trading name of Marten & Co Limited which is authorised and regulated by the Financial Conduct Authority. Marten & Co is not permitted to provide investment advice to individual investors categorised as Retail Clients under the rules of the Financial Conduct Authority.
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