Drax says offer for investor Harmony Energy Income Trust has lapsed
Drax Group PLC on Friday said its takeover offer for Harmony Energy Income Trust PLC has lapsed, after Harmony accepted a rival offer.
The Selby, England-based electricity generator said the offer was conditional on Drax’s court meeting being held on or before the mini long stop date on May 29, or any later date agreed between the two companies.
No such later date was agreed, Drax said.
Harmony Energy is a London-based investor in battery energy storage systems. In March, it accepted an offer of 88.0 pence per share in cash from Drax subsidiary Drax BESS Holdco Ltd. This had valued Harmony at £199.9 million.
Instead, Harmony last week recommended a takeover by Foresight Group Holdings Ltd. Foresight made a 92.4p per share bid, which valued Harmony at £209.9 million.
Following the receipt of Foresight’s offer, and with Drax not increasing its bid in response, Harmony withdrew its recommendation for Drax’s offer in favour of Foresight’s offer.
Shares in Drax were up 2.0% to 655.04p in London on Friday morning.
By Michael Hennessey, Alliance News reporter