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HICL Infrastructure and The Renewables Infrastructure Group are merging to form the UK's largest listed infrastructure company, valued at about 3.98 billion pounds (USD 5.2 billion). The merger combines HICL's broad infrastructure holdings with TRIG's 2.3-gigawatt renewable assets, creating a company with net assets exceeding 5.3 billion pounds. The deal includes a 350 million pound liquidity package, partial cash options, and share allocations of 56% to HICL and 44% to TRIG shareholders. Analysts view the merger positively, citing potential for higher returns, with completion expected in early 2026.
HICL Infrastructure and The Renewables Infrastructure Group Ltd (TRIG) are set to merge, creating the UK's largest listed infrastructure investment company with a combined valuation of around 3.98 billion pounds (USD 5.2 billion). The merger will integrate HICL's portfolio of over 100 infrastructure assets including social projects, utilities, and transport with TRIG's 2.3-gigawatt renewables portfolio, which spans solar, wind, and battery storage across Britain and Europe. Together, the new entity will hold net assets exceeding 5.3 billion pounds. Advertisement
Following the announcement, TRIG shares rose by nearly 6%, while HICL shares fell about 7%. Analysts noted that this reflects ongoing challenges in the UK infrastructure sector, where low valuations have prompted a convergence between core infrastructure and energy transition assets in recent years.
The deal will proceed through a voluntary winding up of Renewables Infrastructure, with its assets transferred to HICL in exchange for new HICL shares. A 350 million pound liquidity package is included, offering a partial cash option for TRIG shareholders and a commitment from Sun Life, HICL's investment manager's parent company, to purchase shares post-merger. In the new structure, HICL shareholders will hold 56% and TRIG shareholders 44% of the combined firm.
Analysts at RBC Capital Markets described the merger as a positive development, highlighting that the enlarged company's scale could enable higher overall returns. The merged entity is targeting an annual dividend of 9 pence per share and a projected net asset value total return of more than 10% per year.
Financial advisory roles were handled by Goldman Sachs International and Investec Bank PLC for HICL, while BNP Paribas advised TRIG. The merger is expected to finalize in the first quarter of 2026.
Source Reuters
5th Jun, 2025
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