24th Sep 2018 08:30
LONDON (Alliance News) - Power generator Drax Group PLC on Monday confirmed it is in talks with Spanish electric utility Iberdrola SA regarding a potential acquisition by Drax of a UK portfolio of pumped storage, renewable hydro & gas-fired generation assets.
On Saturday, the Telegraph reported that Drax plans to acquire power units from Iberdrola, which owns UK 'Big Six' utility Scottish Power Ltd. The assets include gas-fired, hydro and small-scale biomass power plants.
FTSE 250-listed Drax noted on Monday, however, that the discussions are preliminary, and there can be no certainty of any agreement.
Drax noted that it expects to fund any potential purchases through a debt facility.
Drax shares were trading 0.3% lower on Monday morning at 366.20 pence each.