UK-based renewable energy company Drax Group has agreed terms to acquire Bluefield Solar Income Fund (BSIF) in an all-cash deal worth around £561m ($755.4m).
Listed on the London Stock Exchange, BSIF owns and develops UK-based solar and wind energy assets.
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Drax Group will execute the transaction through its wholly owned subsidiary, Drax Smart Generation Holdco.
The deal will be implemented through a court-sanctioned scheme of arrangement under Part VIII of the Companies Law.
Under the terms of the deal, BSIF’s shareholders will receive 92.57p in cash per share, valuing the total issued share capital of BSIF at roughly £548m.
Shareholders who qualify for BSIF’s second interim dividend will also receive an additional 2.25p per share, making a total consideration of 94.82p per share and bringing the transaction’s total value to around £561m including the dividend.
The offer price represents a premium of 28% on the closing price of 72.2p per BSIF share on 4 November 2025, the last business day before the commencement of the offer period.
It also offers a 19% premium to BSIF’s one-month volume-weighted average price of 78.06p per share on that date. The transaction sets BSIF’s enterprise value at approximately £1.08bn.
The boards of both companies have recommended the transaction. The BSIF directors, advised on the financial terms by Deutsche Numis and Rothschild & Co, described the offer as fair and reasonable.
All BSIF directors who hold shares, representing 176,800 shares or 0.03% of issued capital as of 29 May 2026, have irrevocably undertaken to support the deal.
BSIF chair Michael Gibbons said: “The BSIF board is pleased with the conclusion of this process and believes the acquisition at a 31% premium (including the permitted dividend) to the closing share price on 4 November 2025, represents a highly attractive outcome for BSIF Shareholders and a compelling opportunity to crystalise value in cash.
“The BSIF board unanimously recommends that BSIF shareholders vote in favour of the acquisition.”
BSIF was established in 2013 as the UK’s first listed investment company focused on solar energy infrastructure.
As of 31 December 2025, BSIF’s portfolio included 121 photovoltaic (PV) plants, of which 79 are large scale. The company also owns six wind farms and 109 small-scale onshore wind turbines.
Overall, these solar and wind assets, which are fully owned by the company, have a total operational capacity of 748.7MW.
In addition, BSIF holds a 25% stake in a 412.1MW joint venture portfolio with GLIL Infrastructure, making total operating capacity 851.8MW. This includes 793.5MW of solar and 58.3MW of onshore wind.
The company’s proprietary development pipeline at the end of 2025 comprised 946MW of solar projects and 1.9GW of battery energy storage system projects.
Pipeline stages included 25MW under construction, 1.2GW fully consented, 47MW in planning and 1.58GW under development.
BSIF also confirmed that 545MW of its solar portfolio is secured by 15–20 year contracts for difference won in Allocation Rounds 4–7.
For the financial year ended 30 June 2025, BSIF generated underlying earnings of approximately £95m, earnings before interest, taxes, depreciation and amortisation of £130m and operating free cash flow of £118m.
BSIF expects to produce 880GW-hours (GWh) of renewable power, enough for roughly 326,000 homes, and offset more than 155,000t of CO₂-equivalent emissions in the year to 30 June 2026.
Drax Group considers the offer to be aligned with its strategy to invest up to £2bn in flexible and renewable energy between 2025 and 2031. Its current operations include 2.6GW of sustainable biomass, around 560MW of hydroelectric and pumped storage assets, and a pipeline of battery energy storage and open-cycle gas turbine projects.
Drax Group CEO Will Gardiner said: “The UK’s energy system is rapidly evolving and to meet its changing needs Drax is transitioning too. We are excited about the opportunities we have to invest in growing our business and supporting the country’s long-term energy security by adding new sources of generation and storage to our portfolio.
“BSIF could potentially be the biggest acquisition our business has ever made. It represents an attractive opportunity to substantially grow our renewable generation business, while being highly complementary to the wider Drax Group’s existing operations and FlexGen portfolio.
“This deal can help meet the UK’s energy goals of security of supply, affordability and decarbonisation as rising levels of renewable electricity are expected to meet growing national power demand.”
The transaction is subject to various conditions including shareholder, court and regulatory approvals, including a UK National Security and Investment review. Completion of the acquisition is anticipated in the third quarter of 2026.
