RM Infrastructure Income (RMII ) has ruled out allowing investors to withdraw some of their capital after leading shareholders expressed concerns over an exit opportunity worsening the illiquidity of shares in the £108m debt portfolio. 

In a shareholder update after consulting with its biggest investors over its future, RMII said it had received two further merger approaches, one of which it was in the early stages of considering.

However, chair Norman Crighton indicated a managed wind-down of the closed-end fund remained a possibility as there had been only ‘limited’ progress in the first merger approach it disclosed in May.  

Crighton said RMII’s board had still not received detailed proposals of the non-binding offer to merge its assets with the other investment company.

‘For the avoidance of doubt, none of these approaches anticipate any offer for the company, recommended or otherwise, under the City Code on Takeovers and Mergers,’ Crighton stated.

Shares in the 9%-yielder were broadly unchanged at 68.1p, leaving them on a discount of about 26% to their 31 May net asset value of 91p.

Last month Stifel analyst Sachin Saggar speculated that rival debt fund GCP Asset Backed Income (GABI ) could be interested in merging with RMII having begun its own strategic review following the departure of its two fund managers from Gravis Capital.

RMII’s largest shareholders include Hawksmoor, CCLA and FS Wealth Management, which respectively hold 10%, 9.8% and 5.3%, according to Refinitiv data.