Bluefield Solar to be acquired by UK-based Drax in a $755 million renewables transaction
Drax announced on Monday that it had 'agreed' to purchase Bluefield Solar Income Fund in a?deal valued at approximately PS561million ($755.3million).
Drax will be able to expand its UK renewables portfolio with the acquisition of BSIF. This company operates small-scale 'wind turbines and solar plants, and also manages wind farms.
Under the terms and conditions of the acquisition, BSIF shares will be worth 92.57?pence each in cash plus an 'additional?2.25?pence interim dividend per share.
After initially falling 1.8%, shares of Drax, the company that intends to finance the cash component of the deal with PS1.1 billion in Bridge Financing, rose 0.8% as early as 0730 GMT.
BSIF shares, which had been trading at a discounted price to their net asset value, jumped by 16% to 91.2 pence.
The blockade of the Strait of Hormuz has increased energy prices and increased demand for renewables. This is a result of market volatility which began with Russia's invasion in Ukraine in 2022.
Last month, German utility E.ON announced its plans to purchase OVO Energy. The deal would create one of Britain’s largest energy suppliers and add to the consolidation in the sector. ($1 = PS0.7428) Reporting by Simone Lobo, Bengaluru Editing done by Subhranshu Sahu and Rashmi aich
(source: Reuters)
