Downing Renewables & Infrastructure Trust (DORE) is to be taken over by Bagnall Energy, its largest shareholder, in a deal worth £175m.
Bagnall is acquiring the Leeds-based business through its newly-formed vehicle Polar Nimrod Topco Limited.
Commenting on the acquisition last Friday, Bagnall’s chair James Watson said: “We are firm believers in the transformative power of renewable energy infrastructure, and the acquisition of DORE aligns perfectly with Bagnall’s long-term vision and commitment to the sector.
“However, given challenging public market conditions and DORE’s current lack of scale, we believe that the acquisition will enable it to achieve greater scale, success and operational efficiency.
“For too long, DORE’s true value has not been reflected in its share price, and today’s offer represents an attractive opportunity for DORE Shareholders to immediately crystallise value.”
Under the agreement, each DORE shareholder will receive 102.6 pence in cash for every share they hold. This represents a premium of approximately 24% compared with DORE’s closing share price last Thursday.
Bagnall already owns just over 25% of DORE and has a diverse portfolio of investments in solar, wind, hydropower and battery storage across the UK and Northern Europe.