Harmony Energy Income has received a new cash offer from PP Bidco (a new company formed by two funds managed by Foresight LLP). The bid is 92.4p per share, equivalent to the trust’s last published net asset value and well above the 88p per share offered by Drax, and values the company at £209.9m.

The board of Harmony Energy has withdrawn its support for Drax’s bid, proposes adjourning the meetings that had been called to get that bid done, and has thrown its support behind this new offer. Harmony Energy Limited, as well as certain directors of Harmony Energy Limited and Harmony Energy Advisors, have given irrevocable undertakings over 38.579m shares or 17.0% of the company to support this new offer.

A bunch of other shareholders have done the same so that the bid has irrevocable undertakings over 38.4% of the trust’s shares. In addition, Schroder & Co Limited, which controls another 17% has given a letter of intent in support of the deal.

[With 55% of shares held in support of this deal, it looks as though Foresight has won the day. However, Drax hasn’t said anything yet, maybe it will counter. This is an amazing result for Harmony Energy Income shareholders, who were sitting on considerable losses this time last year when the share price was just 41.2p. At the risk of sounding like a stuck record, it is completely illogical that the other two battery energy storage trusts still trade on 40%+ discounts.]

HEIT : Foresight outbids Drax in contest for Harmony Energy Income