Takeover Panel launches auction process for Harmony Energy

(Sharecast News) - Harmony Energy Income Trust confirmed on Monday that a competitive bidding process remains ongoing between Drax Group and Foresight Group for control of the battery storage investment trust, with a formal auction procedure scheduled for 21 May. Drax Bidco, a subsidiary of Drax Group, first agreed a recommended cash offer of 88p per share in March.

However, in April, HEIT's board withdrew its support for that deal in favour of a superior 92.4p per share cash offer from Foresight Bidco, a vehicle controlled by funds managed by Foresight Group.

The Foresight offer was to be voted on by shareholders on 30 May, with the Drax-related meetings indefinitely adjourned.

As neither bidder had declared its proposal final, the Takeover Panel had now initiated an auction process to resolve the impasse.

HEIT's board advised shareholders to take no action until the auction concluded and a formal recommendation was made based on the final offers.

At 0838 BST, shares in Harmony Energy Income Trust were down 0.1% at 96p.

Reporting by Josh White for Sharecast.com.