Aquila European Renewables has revealed the process around a potential merger has begun.
“Further to previous announcements noting the board’s intention to consider broader options for the future of the company, it is pleased to announce that this process, including the consideration of a potential combination of the company with another listed investment company by way of section 110 of the Insolvency Act 1986 (s110 combination) has commenced,” said Aquila.
The announcement follows reports in December that Octopus Renewables Infrastructure Trust had proposed combining with Aquila to create one of the largest LSE-listed diversified renewable energy investment trusts.
“Following the receipt and review of a number of indications of interest in a s110 combination, the board has instructed its advisers, Deutsche Numis, to commence a process of mutual due diligence with multiple interested parties,” said Aqulia.
“Shareholders should note that the engagement with parties interested in a s110 combination with the company is still at a relatively early stage and therefore there can be no certainty that this process will result in a combination on terms which the board considers to be in the best interests of shareholders as a whole.”
The board expects to announce the full year results to 31 December 2023 in April 2024 at which point it will provide a further update, if not earlier.