Investment trust insider on Gore Street Energy Storage – James Carthew’s shareholder view: Gore Street versus RM Funds
As tensions mount between Gore Street Energy Storage and activist investor RM Funds, our columnist examines the strategic options, management’s track record and the risks facing shareholders before casting his vote.
While Citywire has already covered Gore Street Energy Storage’s (GSF) rejection of the RM Funds requisition, I couldn’t resist adding my two pennyworth.
I also talked to manager Alex O’Cinneide in the wake of GSF’s announcement of the conclusions of its strategic review. His sense of frustration with the requisition was evident.
All the battery storage players have had a difficult couple of years. The general selloff in renewables, the savage falls in UK revenues on the back of problems at National Grid ESO and associated dividend cuts/suspensions, and the inability to raise funds to build out pipelines of new projects have been a common problem.
GSF has also had to contend with concerns about its US exposure against a context of an increasingly anti-renewables White House, and a weather-related sharp fall in income from its Texan assets.
All the battery storage funds ended up on big discounts, but then Harmony Energy Income bucked the trend by being taken out by energy investment firm Foresight Group at NAV (after a bidding war with Drax), which highlighted… read more here