LONDON: The boards of HEIT and Drax Bidco announced Tuesday they have agreed to terms for a recommended cash acquisition in which Drax Bidco, a wholly owned subsidiary of Drax Group PLC, will acquire all issued shares of HEIT. The deal, valued at approximately £199.9 million ($253 million), will be executed through a court-sanctioned scheme of arrangement under the U.K. Companies Act.
Under the terms of the acquisition, HEIT shareholders will receive 88 pence per share, a 35% premium to HEIT’s closing price of 65.2 pence on March 14, the last trading day before the offer period began. The offer also represents an 84% premium over HEIT’s share price on May 29, 2024, prior to the announcement of its asset sale process.
HEIT’s board unanimously recommended the deal, citing fairness and shareholder value. Financial adviser Panmure Liberum supported the board’s assessment, confirming the terms as reasonable. Directors have pledged to vote their combined 0.04% stake in favor of the transaction.
The acquisition is contingent on approvals from HEIT shareholders and regulatory clearances. A court meeting and general meeting will be scheduled, with details available in the scheme document published Tuesday on HEIT’s website.
Drax Group, a leading renewable energy company, said the deal aligns with its strategy to expand its sustainable energy portfolio. HEIT, an investment trust, has been exploring strategic options since last year.
The transaction is expected to close in the coming months, pending final approvals.
