- 2023 saw multiple trusts merge or put forward plans to do so
- Some tie-ups have created stronger new entities – but plenty of challenges remain
Even the last working day before Christmas was far from short of investment trust action. The board of Octopus Renewables Infrastructure (ORIT) announced an intention to merge with its peer Aquila European Renewables (AERI) on the morning of 22 December, a move it argued would help create "one of the largest LSE-listed diversified renewable energy investment trusts". The tie-up would create an entity with a net asset value (NAV) of around £1bn based on valuations at the time of the announcement.
The plan has received a lukewarm response from AERI so far, with the board stressing that it "continues to explore a number of different initiatives" alongside the proposed merger in response to investor concerns. But ORIT's proposal forms part of a much wider trend: four investment trust mergers crossed the line in 2023.