Drax Group has rivalled the takeover bid made by Foresight Group for Harmony Energy Income Trust (HEIT), according to a stock exchange announcement this morning (25 March).
The offer, which would see Drax gain the entire issued share capital of HEIT for 88p per share, comes at a 5% premium to Foresight’s possible 84p per share bid.
Foresight’s offer was announced last week (17 March).
Some 19.6% of HEIT shareholders have entered into irrevocable undertakings in favour of the acquisition.
Drax said the opportunity to acquire ready-to-build battery energy storage system assets is a “compelling opportunity” to add to the wider Drax Group’s FlexGen portfolio.
The HEIT board said it intends to unanimously recommend the deal to shareholders at a general meeting.
Norman Crighton, the non-executive chair of HEIT, said: “Since its launch in November 2021, HEIT has assembled a fully operational portfolio of eight 2-hour BESS projects totalling 790.8 MWh/395.4 MV, which have attracted a strong level of interest through both our recent asset sale process and now through a potential bid from Foresight and the recommended offer by Drax.
See also: Q&A: What does Foresight’s acquisition of WHEB mean for the future?
The HEIT board said value to HEIT shareholders will be maximised through the terms of the acquisition.
“Further, the HEIT board believes the acquisition will provide HEIT shareholders with the opportunity to realise the value of their holdings, in cash, at an attractive value which is in excess of the reasonable medium-term prospects for HEIT on a standalone basis as a listed company.”
This article originally appeared in our sister publication, Portfolio Adviser
