RM Infrastructure Income triggers strategic review after receiving merger approach

Limited progress on proposal

The board of the £128.4m RM Infrastructure Income trust has triggered a strategic review of the company, following receipt of a merger approach by another investment trust.

In a stock exchange notice today (23 May), the board said the non-binding indicative bid did not include any option for the trust's shareholders to choose to receive cash. Since the initial approach in early April, the board noted it had attempted to address various issues with the proposal, which would have negatively impacted shareholders, but argued "progress to date has been limited".  "If the counterparty is willing to substantially improve its offer, then the board intends to explore this opportunity further," the board wrote. "At this time, no heads of terms have been agreed...