Shares in Drax Group surged by more than 10 per cent yesterday on speculation that it could be a takeover target. The FTSE 250 power generation and supply company declined to comment on a report that it was being eyed up by an unnamed energy group and could be in early stage talks with the suitor. A Mail on Sunday report at the weekend suggested talks were around a potential 340p-a-share deal that would value it at £1.35 billion. The shares, which closed at 223¼p on Friday, rose 14.3 per cent to 255¼p yesterday. John Musk, analyst at RBC Capital Markets, said Drax “could be justified as a takeover for some of the larger renewable exposed utilities with the likes of RWE, Enel and Engie all potential suitors, in our view, given their renewable expansion plans, asset overlaps and relatively robust balance sheets”.
Times 30th June 2020 read more »