6th Mar 2009 12:00
DRAX GROUP PLC
DRAX GROUP PLC ACQUIRES HAVEN POWER LIMITED
Drax Group plc ("Drax") has today announced that, in line with its strategy to extend its trading capabilities and options for routes to market, it has reached agreement with Welsh Power Group Limited to acquire Haven Power Limited ("Haven"), an electricity supply business serving business customers. The consideration for the business is £10.75 million which includes a power trading book position worth £3.5 million, reflecting its current mark to market value.
Haven currently supplies electricity to around 22,000 small and medium sized businesses, equating to some 0.7TWh per year. It has the capacity to grow significantly from this base, adding value in its own right. In addition, Haven will provide another route to market for electricity generated by Drax, not only in terms of volume but importantly through securing term contracts with customers. This additional ability to secure term hedges complements Drax's existing trading strategy.
Commenting on the acquisition, Dorothy Thompson, Chief Executive of Drax said:
"We are acquiring a good business at a good value. Haven is a small acquisition in the overall context of Drax, but is an excellent fit with the existing trading business, providing a platform to grow another route to market for our power. "
Deutsche Bank acted as sole financial advisor to Drax on the transaction.
For further information please contact:
Andrew Koss, Drax Investor Relations +44 (0) 1757 612333
Melanie Wedgbury, Drax Press Office +44 (0) 1757 612438
Mike Harrison / Nick Claydon, Brunswick +44 (0) 20 7404 5959
Website: www.draxgroup.plc.uk
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