GCP Infrastructure seeks tie-ups with rival listed funds (updated)

GCP Infrastructure Investments

11/08/2023 08:06

(Adds context on rationale, investment trust sector)
       LONDON, Aug 11 (Reuters) - GCP Infrastructure
Investments  GCPI.L  said on Friday  GCPI.L  it had struck a
deal to acquire the assets of GCP Asset Backed Income Fund
(GABI)  GABIG.L  and was in talks with RM Infrastructure Income
 RMII.L  about a potential combination.
    The proposals aim to boost liquidity in the company's shares
and expand GCP Infra's investment strategy, it said.
        The GABI deal would see shareholders of the target
company take a stake in GCP Infra. Both funds are managed by the
same asset manager, Gravis Capital.
        GCP Infra has committed to use 200 million pounds
($254.20 million) of cash to bring down debt and return capital
to investors via share buy-backs as part of the GABI deal.
    The company said it was also in discussions with RM
Infrastructure, managed by RM Funds, about a deal.
    London has seen a series of mergers among listed invested
funds in recent years, driven by efforts to boost trading in
their shares and achieve economies of scale.
($1 = 0.7868 pounds)

 (Reporting by Pablo Mayo Cerqueiro; editing by Jason Neely and
Jamie Freed)
 ((Pablo.MayoCerqueiro@thomsonreuters.com;))