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Drax lets proposed HEIT acquisition lapse
(Sharecast News) - Drax Group's proposed acquisition of Harmony Energy Income Trust (HEIT) lapsed on Friday, after key conditions were not met by the agreed deadline. The bid had been led by Drax BESS Holdco, a wholly owned subsidiary of the FTSE 250-listed Drax Group, and was to be implemented via a court-sanctioned scheme of arrangement under the Companies Act.
A sterling-denominated cash offer was first agreed and announced in March, with the transaction contingent on a number of conditions, including the convening of a court meeting by 29 May, a date referred to in the offer terms as the 'mini long stop date'.
No extension to the deadline was agreed between Drax and HEIT.
As the court meeting condition was not satisfied in time, Drax said it had exercised its right to invoke the long stop provision, causing the scheme to lapse with immediate effect.
The lapse meant that the proposed acquisition of HEIT would no longer proceed under the terms previously announced.
Drax had published a full scheme document in April setting out the terms of the offer and the regulatory process required for completion.
At 0922 BST, shares in Drax Group were up 1.95% at 654.5p.
Reporting by Josh White for Sharecast.com.
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