Infrastructure trusts H果冻传媒L Infrastructure (H果冻传媒L) and The Renewables Infrastructure Group (TRIG) have abandoned plans to merge into a 拢5.3bn infrastructure giant, bowing to pressure from a number of H果冻传媒L shareholders who were unhappy with the deal.
The group, which includes Capital Gearing Trust鈥檚 (CGT) manager, CG Asset Management, had argued in a letter to the board that the deal benefited the trusts鈥� manager, Infrared, as well as TRIG鈥檚 shareholders, while H果冻传媒L鈥檚 shareholders were being 鈥渓eft to suffer鈥�.
One of the key concerns was that the two invest in different areas of infrastructure, with H果冻传媒L鈥檚 portfolio of government-backed assets looking more solid than TRIG鈥檚 renewable energy portfolio, which has struggled recently.
H果冻传媒L鈥檚 board has now said that 鈥渋t cannot progress the transaction without a substantial majority of support from its own investors鈥�.
Analysts now expect both boards to consider further M&A options. Winterflood鈥檚 Ashley Thomas said this could be within their respective segment of infrastructure, as they look to merge with other portfolios with more similar features. Stifel analysts say they think 鈥渢his situation may flush out any bidders who had been running a ruler over either company鈥�.
Read more: Why the infrastructure megamerger is on shaky ground
