In QuotedData’s morning briefing 21 May 2025:

• BBGI Global Infrastructure (BBGI) has confirmed that its shares will be delisted from the London Stock Exchange, following the announcement that Boswell Holdings 3 S.C.Sp. (Bidco) – a vehicle indirectly controlled by British Columbia Investment Management Corporation (BCI) – has declared its recommended cash offer unconditional. With the offer now unconditional, BBGI has applied for the cancellation of its listing on the Official List and trading on the Main Market, and delisting is expected to take effect at 8.00 a.m. on 18 June 2025. The offer remains open for acceptance until further notice and BBGI shareholders are being urged to accept the offer ahead of this date, with the company warning that post-delisting, the liquidity and marketability of any remaining BBGI shares or depository interests will be significantly reduced. Bidco may close the offer to new acceptances sooner but will give 14 days’ notice before closing doing so. Further down the line, Bidco and BBGI may look to implement an asset sale, transferring BBGI’s assets to Bidco or its affiliates. However, there is no guarantee this will happen, nor that any proceeds from such a sale would be distributed equally to shareholders who have not accepted the offer.
• Drax BESS Holdco Limited (Drax Bidco), a wholly owned subsidiary of Drax Group, has confirmed it will not be increasing the terms of its recommended cash offer for Harmony Energy Income Trust (HEIT), and so its offer of 88p per share is now final. The move follows a competitive situation between Drax Bidco and PP Bidco Limited, a vehicle backed by Foresight Group LLP, which emerged after the Drax offer was announced on 25 March 2025. Drax has now confirmed that it intends to invoke a condition to the scheme on 29 May 2025, which would result in its offer lapsing. With Drax stepping back, attention now shifts to Foresight’s competing proposal for HEIT. HEIT’s Board now recommends that its shareholders vote in favour of the Foresight Acquisition at the shareholder meetings convened for 30 May 2025. On 16 May 2025, the Takeover Panel Executive announced that, in accordance with Rule 32.5 of the Takeover Code, it had established an auction procedure for the resolution of the competitive situation in relation to HEIT, which was scheduled to take place on the evening of 21 May 2025. With Drax declaring its 88p offer as final, the auction process is no longer required and will not take place.
• GCP Infrastructure Investments (GCP) has published its latest quarterly investor update, covering the period to 31 March 2025. The net asset value (NAV) stood at 102.28p per share, unchanged from the previous announcement. The portfolio remains well-diversified, comprising 48 investments valued at £902.9m, with a weighted average annualised yield of 8.0% and an average life of 11 years. The principal outstanding was £932.7m, and the portfolio continued to offer partial inflation protection. In line with its capital allocation policy set out in the 2024 annual report, GCP continues to focus on reducing leverage and equity-like exposures, as well as facilitating the return of £50m to shareholders. Net debt fell to £29.2m (from £42.5m at 31 December 2024), with £41m drawn under its revolving credit facility. As previously reported, GCP disposed of its interest in two operational onshore wind farms during the period, generating £16.5m in day-one cash proceeds. The company also bought back 13.6m shares, boosting NAV by 0.49p per share. The board and investment adviser remain active in pursuing further refinancings and disposals to support the capital return strategy. GCP Infra held its AGM on 13 February 2025, with all resolutions passed.
• Foresight Solar Fund (FSFL) has released a trading update for the four months to 30 April 2025, highlighting strong UK generation, progress on disposals, and continued strategic review activity. The global portfolio delivered electricity generation 0.3% ahead of budget, with the UK portfolio performing particularly well – 9.4% above budget – on the back of strong spring irradiation and despite early-year outages. Excluding network interruptions, global generation was 1.9% ahead. Overseas performance was more mixed. In Spain, a combination of weak weather and grid outages left production 11.7% below budget, while curtailment and poor irradiation in Australia resulted in an 11.1% shortfall. Nonetheless, FSFL says the full-year outlook remains positive. The manager continues to use active hedging to lock in power prices and support dividend cover. UK prices are now hedged at an average of £85.48/MWh for 2025, with global contracted revenues at 88% for the calendar year, which FSFL says supports its 1.3x dividend cover target. The sale process for the Australian portfolio remains ongoing, with forecasting work underway to support bidder due diligence and a deal expected later in the year. Meanwhile, the planned sale of over 75MW of UK solar assets remains on track to be marketed by the end of June. The £50m share buyback programme is nearing completion and continues to be reviewed as part of wider capital allocation efforts but the discount remains wide. The board has therefore reiterated its commitment to exploring strategic options, including consolidation. A formal proposal was recently evaluated but was not progressed but FSFL says it remains open to opportunities that can deliver long-term value for shareholders.

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