RM Infrastructure Income has been in a managed wind-down process since 20 December 2023. On 25 September 2024, a successful tender offer returned c.£17.5m to shareholders at 88.59 pence per share (the NAV on 30 August 2024). This represented 16.6% of the issued share capital.

Today, the trust is launching a tender offer of up to £20m. The tender price will be the NAV on 31 May 2025. Completion is expected to take place on 25 June 2025, with cash dispatched by 1 July.

As the realisation of the company’s assets continues, the board is spending more and more time getting to better understand the issues that the underlying borrowers are facing in order to ensure shareholders’ interests are protected during the company’s wind-down process. In 2024, the directors made several visits to borrowers and conducted numerous video calls with the managers of those companies. It became clear that substantially greater time will be required by the board in the wind-down phase in managing the tail end of the portfolio.

Following a shareholder consultation process, the board has put in place an additional compensation package to account for the additional work. A sum equal to 0.5% of cash distributed to shareholders in future tender offers will be accrued as liability within the company until liquidators are appointed and the board hands over control of the final liquidation process. At that time, the total accrued amount will be distributed to directors based on the time spent by each director in managing the wind-down process.

There is a meeting on 24 June to approve this latest tender offer. [It is not clear whether shareholders get to vote on the board’s planned compensation package, but I think that they should.]

RMII : RM Infrastructure Income launches new tender offer