Shareholder Rebellion Threatens John Laing Infrastructure Fund (JLIF)

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By mattbuck from Wikimedia Commons

According to reports, disgruntled shareholders have released warnings regarding a rebellion over the potential £1.4 billion takeover of the John Laing Infrastructure Fund (JLIF).

Some sources informed Sky News that various concerns that are coming from a group of shareholders are centered around the 142.5p-a-share offer of the board of the company. They say that the share offer is too low.

The concerns over a rebellion come after the takeover proposal that was made by Dalmore and Equitix, asset managers, earlier this July.

JLIF acquires infrastructure assets such as schools and motorways. It is currently facing a hectic month ahead after it has set a deadline on the 13th August for any consortium offers. It will then be followed by the release of the half-year results of the company the week after.

Earlier this month, the shares in John Laing Infrastructure Fund (JLIF) have soared by as much as 20 percent after it announced that a consortium of fund managers had made a move for the company which was valued at approximately £1.45 billion.

JLIF is considered to be one of the largest infrastructure funds of the United Kingdom. It owns some stakes in various major landmarks that range from the headquarters of the Ministry of Defence to a stretch of the Docklands Light Railway of London.

Institutional shareholders who own around 10 percent of the John Laing Infrastructure Fund are assumed to have informed the board of the company that the current price on the share offer is too cheap.

Baillie Gifford, an investment management firm, is among the biggest investors of the FTSE 250 firm. It is considered to be one of the funds which have already expressed some reservations regarding the potential takeover bid.

Yesterday, some City sources also informed Sky News that JLIF had now requested PwC, a big four accountancy firm, to carry out a valuation of the portfolio of the company of over 60 assets.

JLIF refused to issue a comment regarding the matter.