RM Infrastructure Income (RMII ) is in talks with two potential merger candidates having received a fourth approach since the £108m debt fund launched its strategic review in May.

In an update yesterday, the company said it had received an additional proposal under section 110 of the Insolvency Act which it was considering along with one of two early-stage proposals it revealed earlier this month.

It said it was in active discussions regarding a potential combination of its assets with another ‘suitable investment company or fund’.

‘For the avoidance of doubt,’ it emphasised that ‘neither approach anticipates any offer for the company’ under the City Code on Takeovers and Mergers.

The statement made no reference to the investment company whose non-binding approach it highlighted when launching its review on 25 May which means the two parties are likely funds not listed on the stock exchange.

Analysts at Stifel had speculated that GCP Asset Backed Income (GABI ), a £395m loan portfolio, could have made the approach having struggled with some bad debts and lost its two fund managers leave in recent months. 

However, news that Gravis, the fund manager, has hired a chief investment officer, may have removed the need for a tie-up with RM Infrastructure. A spokesman for GABI declined to comment.

In the meantime, the 9.5%-yielding RM fund will not make any further investments and cash from maturing loans will be used to reduce borrrowings and buy back shares currently trailing on a 26% discount to net asset value.

The company also appointed Singer Capital Markets as its sole corporate broker in place of Peel Hunt.

Yesterday, the shares closed down 2% at 68.5p, a 25.7% discount to net asset value, according to Numis data.