Auction set for Harmony Energy takeover bids

Published 16/05/2025, 17:06
Auction set for Harmony Energy takeover bids

LONDON - A competitive situation has emerged in the acquisition of Harmony (JO:HARJ) Energy Income Trust PLC (HEIT), with two bidders, Drax BESS Holdco Limited (Drax Bidco) and PP Bidco Limited (Foresight Bidco), vying for the company. The Takeover Panel has established an auction procedure to resolve this contest, scheduled for the evening of Wednesday, May 21, 2025.

Drax Bidco, a subsidiary of Drax Group (LON:DRX) plc, initially offered to acquire HEIT for 88.0p per share on March 25, 2025. Foresight Bidco, controlled by funds managed by Foresight Group LLP, later proposed a higher bid of 92.4p per share on April 16, 2025, leading HEIT to withdraw its recommendation of the Drax Bidco offer.

The auction will consist of up to five rounds, providing a structured opportunity for either bidder to increase their offer. The first round allows for an initial increased bid from either party. Subsequent rounds are contingent on the actions of the previous round, with a final round permitting both to make further increased bids. The rules stipulate that any increased bid must be in cash in pounds sterling and exceed the offeror’s previous bid by at least one penny per share in the first four rounds and by at least one-tenth of a penny in the final round.

During the auction, neither bidder can introduce new conditions to their offer, deal in HEIT’s securities, or make public statements regarding the auction. Following the auction’s conclusion, the Panel Executive will announce the final offer prices, which will be published on the Panel’s website.

Both offerors will then announce their final bids or confirm their existing offers by the morning of Thursday, May 22, 2025. HEIT will subsequently release its board’s recommendation to its shareholders regarding the revised offers.

The auction procedure terms have been agreed upon by HEIT, Drax Bidco, and Foresight Bidco, ensuring an orderly process for determining the future ownership of HEIT. This information is based on a press release statement.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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