NextEnergy Solar (NESF), the highest yielding but in share price terms one of the worst performing renewables funds, has appointed a new chair with mergers and acquisitions experience, raising the possibility the company may look for a buyer.

Tony Quinlan, a former chief executive of Laird who sold the engineer to private equity group Advent for £1.2bn in 2018, will join the £285m investment company next week in time for its half-year results. He succeeds Helen Mahy, a former chair of Renewables Infrastructure Group (TRIG), who stepped down in May after only two years on the board.

As chief financial officer of Drax between 2008 and 2015, Quinlan was involved in the transformation of the energy generator from coal to sustainable biomass. NextEnergy said he brought significant knowledge of the UK electricity market and renewables and had strong credentials managing investor relations.

He is also currently senior independent director at construction group Costain and engineer Hill & Smith, which both have substantial infrastructure businesses.  

Paul Le Page, interim chair for the past six months, said: “Tony’s background in the energy and infrastructure sectors and his strong reputation for integrity, sound judgment and shareholder engagement further strengthens the board’s governance and skill set.”

In his statement, Quinlan emphasised the importance of delivering sustainable long-term returns for shareholders and tackling the 43% discount to which the shares have steadily fallen in the past three years as interest rates and inflation rose and cost disclosure deterred investors from “alternative” asset funds.

“Engaging openly and constructively with our shareholders will be a key priority as we navigate opportunities and challenges in the evolving renewable energy landscape,” he said.

Shares that have lost a quarter of their value over five years but offer a 16.6% yield, jumped 3% in early trading to 51.9p but later slipped back to 50.3p, up 1.4%.

The stock has been hit recently by uncertainty over the government’s plans to change the rate of inflation by which ROC and FIT renewable incentive payments rise. This month the company said the most severe of two options under consideration could knock 9% off its net asset value.