20th Jun 2025 09:27
(Alliance News) - Downing Renewables & Infrastructure Trust PLC on Friday said it reached an agreement with Bagnall Energy Ltd, its largest shareholder, for its takeover.
Downing is a Leeds, England-based company is an investor in UK and Northern European renewable energy assets. Bagnall is a renewable energy and infrastructure arm of Downing Estate Planning Services. It manages a portfolio of solar, wind, hydropower and battery storage assets in the UK and Northern Europe.
Pertinently, Downing's investment manager Downing LLP acts as discretionary investment manager to Bagnall and provides some services to Bagnall.
Bagnall said that each DORE shareholder will be entitled to 102.6016 pence in cash, a premium of approximately 24% to DORE's closing price of 83.00p on Thursday.
DORE shares jumped 22% to 101.63 pence each on Friday morning in London.
The offer price values DORE at around GBP174.6 million. DORE expects the takeover to become effective in the third or early in the fourth quarter of 2025.
"As DORE's largest shareholder since DORE's initial public offering, the Bagnall board is pleased by the progress made by DORE so far under the management of the Investment Manager," Bagnall said.
"However, the adverse macroeconomic backdrop affecting DORE and many other alternative funds in the UK investment trust sector has resulted in DORE's shares consistently trading at a discount to DORE's NAV per share since the end of September 2022...DORE will achieve greater success as a private vehicle.
"The privatisation of DORE will also deliver immediate value crystallisation to DORE's existing shareholders. Bagnall is well placed to support DORE's existing portfolio as both companies have been managed by the Investment Manager since inception."
Bagnall Chair James Watson said: "We are firm believers in the transformative power of renewable energy infrastructure, and the acquisition of DORE aligns perfectly with Bagnall's long-term vision and commitment to the sector. However, given challenging public market conditions and DORE's current lack of scale, we believe that the acquisition will enable it to achieve greater scale, success and operational efficiency. For too long, DORE's true value has not been reflected in its share price, and today's offer represents an attractive opportunity for DORE shareholders to immediately crystallise value."
By Tom Budszus, Alliance News slot editor
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