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, the adviser believes that this has the potential to address some of the issues that may have given rise to GCP’s discount.
Following a period of 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 what looks like a period of consolidation for the fund, as falling energy prices and higher discount rates seem to have weighed on returns. GCP has moved to trade on a 34.3% discount and a 9.8% yield. Despite this, GCP’s assets have continued to grow, and the adviser believes the outlook for investors remains as promising as ever thanks to a broad range of thematic tailwinds.
21 Aug 2023
GCP Infrastructure – Merger to unlock compelling value?
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GCP Infrastructure – Merger to unlock compelling value?
GCP Infrastructure Investments Ltd GBP (GCP:LON) | 74.0 0.1 0.2% | Mkt Cap: 664.6m
- Published:
21 Aug 2023 -
Author:
James Carthew | Andrew Courtney -
Pages:
25
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, the adviser believes that this has the potential to address some of the issues that may have given rise to GCP’s discount.
Following a period of 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 what looks like a period of consolidation for the fund, as falling energy prices and higher discount rates seem to have weighed on returns. GCP has moved to trade on a 34.3% discount and a 9.8% yield. Despite this, GCP’s assets have continued to grow, and the adviser believes the outlook for investors remains as promising as ever thanks to a broad range of thematic tailwinds.