The Honeycomb Investment Trust (HIT) has hinted that it may be set to make another offer for Pollen Street Secured Lending (PSSL).
The board of PSSL snubbed an offer from Honeycomb earlier this week to merge the two alternative-finance focused funds, which are both managed by the same investment manager Pollen Street Capital.
Waterfall Asset Management has separately said it is considering a cash offer for PSSL, which the board has said it prefers.
However, HIT said in a stock market update on Friday that it “remains convinced of the strategic rationale of combining both companies to create the leading UK specialty finance investment trust.”
It said a proposed merger, resulting in an exchange ratio of 0.9335 new HIT ordinary shares in exchange for each PSSL ordinary share, provides “significant value creation potential for both sets of shareholders” and an opportunity to improve the net asset value.
HIT said it has consulted with its largest shareholders who have indicated they are, in principle, supportive of the possible merger.
The announcement said its update does not yet constitute a new offer.