16th May 2025 19:35
(Alliance News) - The Takeover Panel on Friday said it has established an "auction process" for Harmony Energy Income Trust PLC after neither bidder for the company declared its offer final.
"On the basis that neither offeror has declared its offer final, such that either offer may be increased or otherwise revised, a competitive situation continues to exist for the purposes of Rule 32.5 of the Takeover Code." the Takeover Panel said.
In March, HEIT, the London-based investment company that invests in battery energy storage systems in the UK accepted an 88.0 pence per share offer from Drax PLC, valuing the entire trust at GBP199.9 million.
It was higher than an original bid by Foresight Group Holdings Ltd. However, Foresight then trumped this with a GBP209.9 million cash bid worth 92.4 pence per share which Harmony accepted.
The Takeover Panel said to resolve this "competitive situation" it has, at the request of the parties, established an auction procedure.
The auction procedure will consist of a maximum of five rounds which will all take place on the evening of May 21. In the first round, either offeror may make an increased bid.
If the auction procedure has not concluded in the first round (which it will if no increased bid is made in the first round), there will be up to three further rounds, in which an offeror will be eligible to make a bid only if the other offeror made an increased bid in the immediately preceding round.
If the auction procedure has not concluded after these three further rounds (which it will if no increased bid is made in a round), there will be a fifth and final round, in which both offerors may make an increased bid.
If either offeror makes a "no increase" statement prior to 17.00 BST on May 20, the auction procedure shall not commence.
Each of HEIT, Drax Bidco and Foresight Bidco has agreed to the terms of the auction procedure and this statement, the Takeover Panel.
Shares in HEIT closed down 0.1% at 96.01 pence each in London on Friday. Drax closed up 0.3% at 616.00p.
By Jeremy Cutler, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.
Related Shares:
Harmony EnergyDrax