Gore Street Energy Storage (GSF) is in the process of selling its 22MW operational energy storage asset in Cremzow, Germany. Multiple bidders had been whittled down to one and the process had reached an advanced stage, with a sale and purchase agreement in the final stages, but then the buyer tried to drop the price.
The board says “There is no obvious market-based rationale for this reduction and the asset is trading well, achieving revenues of £17.19/MW/hr in Q1 FY26/27. Therefore, the board considers the most likely reason for the disruption to the sale process with this buyer is the uncertainty caused by Saba’s requisitioned resolutions.”
The board decided to exit discussions with that buyer and re-start talks with one of the other bidders. It has confirmed that none of these prospective purchasers is connected with the manager.
The chair Angus Gordon-Lennox said “This is an unfortunate and frustrating development in light of this sale process being in a very advanced stage. As we have previously noted to shareholders, one of the consequences of the requisitioned Saba resolutions is that live sale processes may be adversely affected, either because the company is perceived to be a forced seller or because of broader uncertainty regarding its future, and with consequent detrimental impacts on the value achievable for shareholders. We will continue to provide regular updates to shareholders on this sale and on the parallel processes underway.”
GSF has also disclosed that two independent advisers on voting – ISS-Corporate and PIRC – have come out against Saba’s proposals and will be recommending that shareholders side with the board. The deadline for voting at the AGM is fast approaching, if you are a shareholder and have not voted yet, it is important that you do so.
QuotedData’s James Carthew said: “It is obvious that a company whose shareholders have forced it to sell off its assets within a tight timeframe is going to be in a weaker negotiating position than one that can walk away and wait for a better offer. We cannot know the real reason why the buyer tried to lowball GSF at the last minute, but there is logic behind the board’s suspicions. I have already voted my shares with the board’s recommendations.”
