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HICL Raises Full-Year Return Outlook, CVC Clears Naturgy Stake Overhang, RBC Says

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HICL Infrastructure raised its FY26 net asset value to 10.3% as CVC Capital removed a Naturgy stake overhang through a full 13.8% exit, RBC Capital Markets said in a Wednesday note.

HICL Infrastructure lifted FY26 net asset value to 160.2 British pence ($2.14) per share, up from 153.1 British pence per share a year earlier, the note said.

Strong contributions from HICL's growth assets drove a 9% rise in EBITDA over the year, supporting balance-sheet flexibility and potential expansion in dividends and NAV, RBC Capital Markets said.

RBC reiterated its outperform rating on HICL Infrastructure and raised its price target to 165 British pence per share.

CVC Capital exited Naturgy after selling its remaining 13.8% stake through an accelerated bookbuild involving 107.5 million shares priced at 28.55 euros ($33.20) each, according to a company announcement cited by RBC.

Derivative settlements covering another 26.4 million Naturgy shares, or 2.72%, completed CVC's disposal process, while the placement reflected a 4.6% discount to Tuesday's closing price, RBC said.

The transaction removed a major overhang for Naturgy investors, RBC said, adding that the placement price exceeded BlackRock-GIP's March placement of an 11.4% stake at 25.20 euros per share.

Gresham House Energy Storage agreed to sell 25% stakes in three battery energy storage projects totaling 397 megawatts to Summit Transition Partners, a joint venture between Sumitomo Corporation and TPK Holdings.

The agreement also grants Summit exclusivity rights to acquire similar stakes in an additional 297 megawatts of pipeline projects, while the deal includes upfront funding for the Cockenzie, Monets Garden and Elland 2 developments.

RBC said the transaction lowers funding pressure on GRID's pipeline expansion plans after earlier concerns over debt levels approaching roughly 30% of gross asset value during construction activity.

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