Downing Renewables to be taken private in £175m deal

(Sharecast News) - Shares in Downing Renewables & Infrastructure Trust soared on Friday, after it agreed to be taken over by Bagnall Energy in a £175m deal. Bagnall is to pay 102.6p per share for Dore, which owns a portfolio of renewable energy and other infrastructure assets in the UK and northern Europe.

A near 24% premium to Thursday's closing price, the deal values Dore at £174.55m.

As at 1000 BST, shares in Dore were up 22% at 101.42p.

Hugh Little, Dore chair, said the deal was in the best interest of shareholders.

"Dore has consistently delivered on its investment strategy, resulting in a strong NAV and dividend performance, since IPO," he said.

"Despite this, and the proactive steps taken by the board to narrow its share price discount in recent years, the sustained horizon of economic and macro uncertainty has weighed on the share price, which has also limited the opportunities for further raising of new capital - and which may stretch into the mid to long-term."

James Watson, chair of Bagnall, said: "We are firm believers in the transformative power of renewable energy infrastructure, and the acquisition of Dore alights perfectly with Bagnall's long-term vision and commitment to the sector.

"The acquisition will enable [Dore] to achieve greater scale, success and operational efficiency. For too long, Dore's true value has not been reflected in its share price."

Bagnall - which is acquiring the business through its newly-formed vehicle Polar Nimrod - already owns just over 25% of Dore.