Constellation Energy and hedge fund Perry Capital, both of the US, have made a £1.9 billion ($3.5 billion) bid for Drax Power, owners of Europe’s largest coal-fired power station, the UK’s 4 GW Drax station in Selby, Yorkshire.
Drax, which plans to list on the London Stock Exchange by the end of the year, is considering the offer, although the board notes that the offer is below what it considers to be the market value.
The Drax board has announced that it will consider any proposal which it believes will deliver fair value to its shareholders, whilst continuing with preparations for a refinancing and listing. The next important step in the refinancing and listing process, being the posting of a document to investors seeking irrevocable undertakings from shareholders by mid-October, will commence next week.
Constellation and Perry have hired Lazard as an advisor.