Drax stock rises following Harmony Energy acquisition Investing.com -- Shares of Drax Group PLC (LSE:LON:DRX) edged up 1% today after the company announced its agreement to acquire Harmony (JO:HARJ) Energy Income Trust for £199.9 million. The offer, priced at 88p per share, represents an 11% premium over Harmony Energy’s last closing price and a 5% premium over a recent bid from Foresight Group. The acquisition is set to provide Drax with an operational 395MW UK battery storage portfolio, which translates to approximately 791MWh of energy storage capacity. This strategic move will enhance Drax’s existing flexible and renewable generation portfolio to a total of 4.5GW. The transaction is valued at an estimated £835K per MW, considering both equity and debt for the 395MW of battery energy storage system (BESS) capacity. Analysts view the acquisition as a positive step in line with Drax’s stated interests. A comment from Jefferies highlighted the transaction’s alignment with Drax’s guidance from its full-year 2024 results, which indicated a strategic interest in UK battery storage. "Overall, this transaction aligns with Drax’s guidance at FY24 results of an interest in UK battery storage. Given its relatively small size, the transaction is unlikely significantly impact Drax’s credit metrics," Jefferies noted. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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