Panmure Liberum acts as Sole Financial Adviser, Sole Rule 3 Adviser, and Joint Broker on Harmony Energy Income Trust’s £200m Recommended Cash Offer by Drax
We are delighted to announce that Panmure Liberum is acting for Harmony Energy Income Trust plc (“HEIT”), the UK-listed investment trust specialising in commercial scale 2-hour battery energy storage systems (“BESS”), on the Recommended Cash Offer of 88 pence per HEIT share from Drax Group plc (“Drax”).
HEIT was launched in November 2021 to invest in BESS in Great Britain. Since IPO HEIT’s portfolio has grown from five BESS development projects to eight fully operational 2-hour duration BESS projects totalling 790.8 MWh / 395.4 MW.
Since 2023, challenging macro and sector-specific headwinds have impacted the performance of the UK BESS investment trust sector with constituents trading at significant discounts to their net asset values.
HEIT launched an asset sale process in May 2024 to maximise value to shareholders, demonstrate the true value of the HEIT portfolio and the continuing disconnect with the share price. The asset sale process attracted strong interest from multiple bidders looking to acquire some or all of HEIT’s BESS projects. HEIT progressed to a final stage of negotiations with Drax on an exclusive basis in December 2024 in relation to a sale of the entire HEIT portfolio.
Following expiry of the Drax exclusivity, Foresight Group LLP announced a possible bid at 84 pence per HEIT share to which Drax responded with a Recommended Cash Offer of 88 pence per HEIT share (collectively “the Offers”)
Panmure Liberum, which was appointed as joint broker to HEIT in May 2024, is acting as Sole Financial Adviser, Sole Rule 3 Adviser, and Joint Broker to HEIT in respect of the Offers.
Panmure Liberum Team
Investment Banking – Chris Clarke, Darren Vickers, Will King, Ashwin Kohli
M&A – Tim Medak
Research – Shonil Chande, Alex O’Hanlon
Sales – James Shields
IR – Skaiste Miglin, Connie Owens
