John Laing Infrastructure Fund is mulling a takeover offer from Dalmore Capital and Equitix Investment Management.
The listed fund, which has investments in numerous hospitals and local authority projects, said the offer would represent a 21% premium on its share price at close of trading Friday, valuing the deal, should it go ahead at around $1.9bn (£1.44bn).
The firm’s shares gained 18% this morning on the news.
JLIF has dozens of contracts with key pieces of infrastructure across the UK in sectors including transport, health, education, regeneration and social housing and street lighting.
Dalmore has around £4bn under management, largely from pension funds. Its investments include PPP/PFI projects, gas network Cadent and offshore transmission assets. The fund also has a major share of the Thames Tideway Tunnel and a £300m investment in Anglian Water.
Equitix manages infrastructure assets of around £3bn, including renewables, utility infrastructure and energy efficiency investments, as well as sectors including social housing, education, healthcare, waste and transport.