HICL Infrastructure PLC (LSE:HICL) and The Renewables Infrastructure Group Limited (LSE:TRIG) have announced a merger that will form the UK’s largest listed infrastructure investment vehicle, with combined net assets of more than £5.3 billion. The transaction, slated for completion in Q1 2026, will see TRIG wound up and its assets transferred to HICL in exchange for new HICL shares and cash. By uniting their portfolios and sector expertise, the enlarged group aims to capitalise on long-term infrastructure megatrends across both core and renewable assets. The combined entity is targeting a 9.0 pence per-share dividend and a NAV total return exceeding 10% per year, supported by a £100 million liquidity package from Sun Life.
HICL’s outlook remains underpinned by its strong financial footing, including zero balance-sheet debt and robust cash-flow discipline. Strategic share buybacks add further support for shareholder value. Even so, technical indicators hint at potential overbought conditions, and the stock’s moderately elevated P/E ratio raises valuation considerations. A strong dividend yield helps balance these risks for income-focused investors.
More about HICL Infrastructure
HICL Infrastructure PLC has been listed on the London Stock Exchange since 2006 and originally specialised in social infrastructure assets under PFI and PPP models. The company has since broadened its mandate to include regulated utilities, transport concessions, and digital infrastructure across the UK, Europe, North America, and New Zealand. As of March 2025, its portfolio comprised more than 100 essential infrastructure assets valued at around £3 billion. TRIG, launched in 2013, is a renewables-focused investment company with a 2.3GW portfolio spanning solar, onshore and offshore wind, and battery storage, and a net asset value of roughly £2.6 billion.
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