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LONDON - Drax Group (LON:DRX) PLC’s subsidiary, Drax BESS Holdco Limited ("Drax Bidco"), has experienced a setback in its proposed acquisition of Harmony (JO:HARJ) Energy Income Trust plc ("HEIT"). The irrevocable undertaking from investment manager Schroder & Co Ltd, which had committed to voting in favor of the acquisition, lapsed on Monday.
On March 25, 2025, Drax Bidco and HEIT announced an agreement on the terms of a recommended cash offer for HEIT’s entire issued and to be issued share capital. The acquisition was to be executed through a scheme of arrangement. Schroder, managing funds and accounts, had given an irrevocable undertaking to support the deal with approximately 16.4% of HEIT’s shares.
However, as per the terms of the agreement, Schroder’s commitment would cease if a third party made a competing offer and Drax Bidco did not respond with an improved offer within ten days. Following such a competing offer, the irrevocable undertaking from Schroder ended on April 26, 2025.
As a result, the total number of irrevocable undertakings currently supporting Drax’s acquisition of HEIT has decreased to roughly 3.2% of HEIT’s issued share capital as of the close of business on April 28, 2025.
This development, as reported in a statement in compliance with Rule 2.10(c) of the City Code on Takeovers and Mergers, represents a significant reduction in the shareholder support for Drax Bidco’s bid to acquire HEIT. The information is based on a press release statement.
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