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Drax acquires Pinnacle Renewable Energy to boost biomass production capacity
StockMarketWire.com
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Power generation business Drax said it had signed an agreement to acquire Pinnacle Renewable Energy for C$11.30 per share, or £226 million.
The acquisition 'advances Drax's biomass strategy by more than doubling its biomass production capacity, significantly reducing its cost of biomass production and adding a major biomass supply business underpinned by long-term contracts with high-quality Asian and European counterparties,' the company said.
The deal represented a premium of 13% based on the closing market price as at 5 February 2021 of C$10.04 per share and valued the fully diluted equity of Pinnacle at C$385 million.
The acquisition, which remained subject to Drax and Pinnacle shareholder approval, court approval, regulatory approvals and the satisfaction of certain other customary conditions, had been unanimously recommended by Pinnacle.
Completion was expected to occur in the second or third quarter of 2021.
Story provided by StockMarketWire.com
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