Battery energy storage system (BESS) investor Harmony Energy Income Trust has reached an agreement on the financial terms of a potential acquisition.
According to a regulatory statement published today (17 March), Harmony Energy Income Trust (HEIT) has reached an agreement with Foresight Group LLP for the latter to potentially acquire the entire share capital of HEIT for 84.0p per share, making up a total of £190.8 million. This represents a 29% premium on the closing share price of 65.2p on 14 March 2025, and a 76% premium on the share price in May 2024, on the last business day immediately before news of a potential asset sale was announced.
In a results announcement released in late February 2025, covering the year up to 31 October 2024, HEIT’s Net Asset Value (NAV) was established at £201.05 million, or 88.52 pence per ordinary share. As such, this takeover offer represents a decrease from the potential seen in autumn of last year. HEIT’s NAV has been in a year-on-year decline, according to the results filing, with the NAV falling by 23.3%, or 26.89% per ordinary share, since 31 October 2023.
HEIT notes that there is still no certainty that an offer will ultimately be made for the company by Foresight Group LLP, adding that further announcements will be made as and when appropriate.
Harmony Energy has made substantial progress through the sale of its entire portfolio, having announced in late December that it had reached the final stage of selling its full portfolio.
The company noted at that time that it had progressed to the final stage of negotiations with an unnamed preferred bidder on an exclusive basis for a potential sale, having received an “encouraging” number of bids in the second stage of preparing an asset sale in October of 2024.
However, in today’s regulatory announcement, HEIT stated that its board believes this offer for the takeover of the company represents better value for shareholders than a potential asset sale. As such, the board has indicated to Foresight Group LLP that, if it should make a firm offer for the company consistent with these terms, it will recommend voting in favour of such an offer to its shareholders.
