Honeycomb Investment Trust has officially ruled out making an offer to merge with Pollen Street Secured Lending (PSSL).
The alternative finance-focused fund had previously been eyeing a merger with PSSL, which is also the subject of a potential acquisition by Waterfall Asset Management.
Honeycomb said last month that its largest shareholders would support a merger of the two investment trusts, both of which are managed by Pollen Street Capital (PSC).
Under the terms of the proposed merger, PSSL’s shareholders would be entitled to 0.9335 per cent of Honeycomb shares in exchange for each PSSL ordinary share.
But a stock market update from Honeycomb on 3 September said its board does not intend to make an offer.
The announcement also said that the fund, and anyone associated with it, reserves the right to make or participate in an offer or possible offer for PSSL within six months.
It leaves Waterfall as the remaining potential suitor for PSSL.
Waterfall is due to decide on making a cash offer for PSSL by 8 September and has also been named as a preferred successor to PSC to wind down the fund if the purchase does not go ahead.
The PSSL board has previously said it would prefer a Waterfall offer over the Honeycomb merger proposal.