HICL Infrastructure PLC (“HICL UK”), a UK investment trust managed by InfraRed Capital Partners Limited (“InfraRed”) was admitted to trading on the London Stock Exchange yesterday morning, 1 April 2019. This is a new UK-incorporated company that has acquired the assets of HICL Infrastructure Company Limited, an Guernsey investment company (“HICL Guernsey”) which is advised by InfraRed. The shareholders of HICL Guernsey have been given new shares in HICL UK on a one-for-one basis.
The move on-shore is the culmination of a process that started with a discussion of HICL Guernsey’s domicile in its Interim Results in November 2017 and its Annual Results in May 2018. InfraRed then refreshed previously undertaken analysis of the steps that would be required to transfer HICL's domicile from Guernsey to the UK. This work involved input from third-party legal and tax advisers and included an assessment of the economic impact on shareholders of a move to a UK investment trust structure. InfraRed also consulted informally with a number of institutional shareholders on this matter during investor meetings throughout summer 2018 and again in Q1 2019.
HICL UK’s domicile is now aligned with the location of the majority of its investors and investments. The move on-shore mitigates the potential impact of potential future changes in cross-border tax regimes.