Drax has outbid Foresight Group LLP to acquire the share capital of the publicly-listed Harmony Energy Income Trust (HEIT) for £200 million (US$239.15 million).
A wholly owned subsidiary of power generation company Drax specialised in battery energy storage systems (BESS), Drax BESS Holdco (Drax Bidco), made a cash offer of 88p per share, valuing battery energy storage system (BESS) project investor HEIT at £199.9 million.
Foresight’s offer, which HEIT was poised to accept if made firm, was for 84p per share, making up a total of £190.8 million.
In a results announcement released in late February 2025, covering the year up to 31 October 2024, HEIT’s Net Asset Value (NAV) was established at £201.05 million, or 88.52p per ordinary share.
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Drax’s offer is a 5% premium over Foresight’s and equates to a 35% premium on the share price before clean energy generation and infrastructure investment group Foresight’s offer, which was made on 17 March.
According to its most recent results filing, HEIT’s NAV has been declining year over year, falling by 23.3%, or 26.89% per ordinary share, since 31 October 2023.
The income trust acquires ready-to-build BESS assets. According to the acquisition announcement, Drax sees the takeover as a “compelling opportunity” to add operating BESS assets to the wider Drax group’s FlexGen portfolio.
HEIT’s directors will recommend unanimously that shareholders vote in favour of the Drax acquisition, which is contingent on their approval. The two companies noted that HEIT shareholders representing 19.6% of HEIT’s issued ordinary share capital have already lodged support for the transaction.
The trust was launched in November 2021 and has a fully operational portfolio of eight 2-hour duration BESS projects totalling 790.8MWh/395.4MV.
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