Bullish indicating open at $55-$60, IPO prices at $37
Investing.com -- Downing Renewables & Infrastructure Trust PLC (LON:DORE) stock surged 22.4% after Bagnall Energy Limited announced a recommended cash offer to acquire the company in a deal valuing it at approximately £174.55 million.
Under the terms of the agreement, Polar Nimrod Topco Limited, a wholly-owned subsidiary of Bagnall, will pay 102.6016 pence in cash for each DORE share it doesn’t already own. The offer represents a 23.62% premium to DORE’s closing price of 83.00 pence on June 19.
The acquisition will be implemented through a court-sanctioned scheme of arrangement. Bagnall currently holds 25.35% of DORE’s issued ordinary share capital, with commitments and indications of support from shareholders representing approximately an additional 16.76%.
DORE’s board has unanimously recommended that shareholders vote in favor of the scheme. The offer price represents a 7.46% discount to DORE’s unaudited ex-dividend net asset value of 110.8727 pence per share as of March 31, 2025.
Shareholders on the register as of May 30, 2025, will receive the previously announced first quarterly interim dividend of 1.4875 pence per share, payable around June 27, 2025. If the acquisition’s effective date falls after August 31, 2025, DORE may declare an additional special dividend of 0.5 pence per share.
Despite delivering a strong NAV total return of 36.2% since its IPO, DORE has traded at a discount to its net asset value since late 2022. The transaction is expected to be completed in the third or early fourth quarter of 2025, subject to shareholder approval and regulatory clearances.