Harmony Energy Income Trust has issued a positive update on its asset sale process.

The company announced on 30 April 2024 that it had engaged Jones Lang LaSalle with a mandate to seek offers for some or all of its assets. On 18 October 2024, HEIT announced that it had been encouraged by the level of interest and non-binding offers received from various parties relating to both individual assets, as well as the full portfolio. It was also noted that a select number of parties had been invited to proceed to the second phase of the process.

Having received and analysed updated commercial offers during the second phase, the company today confirms that it is progressing to a final stage of negotiations with a preferred bidder on an exclusive basis and in relation to the company’s full portfolio of assets.

While there can be no certainty as to whether any assets will be sold, nor the terms of any sale, the company anticipates that negotiations with the preferred bidder will be concluded in early February 2025. The completion of any sale of the portfolio will also be conditional upon shareholder approval.

[All eyes are looking to see what price the portfolio will fetch, but the company has consistently said that there has been a lot of interest in the portfolio, which is encouraging. I suspect that the current 31% discount is too wide.]

HEIT : Harmony Energy has a preferred bidder for its assets