View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
February 9, 2021

Drax Group to acquire Pinnacle Renewable Energy for $652m

Drax Group and one of its subsidiaries have agreed to acquire Pinnacle Renewable Energy for a cash sum of $652m (C$831m).

By Umesh Ellichipuram

Drax Group and one of its subsidiaries have agreed to acquire Pinnacle Renewable Energy for a cash sum of $652m (C$831m).

Free Report
img

Wind Power Market seeing increased risk and disruption

The wind power market has grown at a CAGR of 14% between 2010 and 2021 to reach 830 GW by end of 2021. This has largely been possible due to favourable government policies that have provided incentives to the sector. This has led to an increase in the share of wind in the capacity mix, going from a miniscule 4% in 2010 to 10% in 2021. This is further set to rise to 15% by 2030. However, the recent commodity price increase has hit the sector hard, increasing risks for wind turbine manufacturers and project developers, and the Russia-Ukraine crisis has caused further price increase and supply chain disruption. In light of this, GlobalData has identified which countries are expected to add the majority of wind power capacity out to 2030. Get ahead and download this whitepaper for more details on the current state of the Wind Power Market.
by GlobalData
Enter your details here to receive your free Report.

The group company, along with Drax Canadian Holdings, has signed a definitive arrangement to purchase all issued and outstanding common shares. The deal includes the assumption of net debt and Pinnacle’s non-controlling interests in its joint ventures.

Pinnacle Renewable Energy CEO Duncan Davies said: “Pinnacle’s board of directors has unanimously determined that the transaction represents the best course of action for the company and its shareholders.

“On closing, the transaction will deliver immediate, significant, and certain cash value to our shareholders.

“At the same time, the combination of Pinnacle and Drax will create a global leader in sustainable biomass with the vision, technical expertise and financial strength to help meet the growing demand for renewable energy products around the world.”

Pinnacle shareholders have entered into voting support agreements in favour of the deal. This includes Canadian investment firm ONCAP, which owns 36% of the outstanding Pinnacle shares. According to the agreement, Pinnacle shareholders will receive $8.88 (C$11.30) per share in cash.

Apart from shareholder approvals, the closing of the deal is subject to governmental and regulatory approvals and the approval of the Supreme Court of British Columbia.

Pinnacle said that the transaction will be implemented pursuant to a plan of arrangement under the Business Corporations Act (British Columbia).

Completion of the deal is not subject to a financing condition and is expected to take place in the second or third quarter of this year.

Drax CEO Will Gardiner said: “I am excited about this deal which will reinforce Drax’s position as the world’s leading sustainable biomass generation and supply business, delivering against our strategy to increase self-supply, reduce our biomass production cost and create a long-term future for sustainable biomass.

“We expect to benefit greatly from Pinnacle’s operational and commercial expertise, and I am looking forward to what we can achieve together.”

Related Companies

Free Report
img

Wind Power Market seeing increased risk and disruption

The wind power market has grown at a CAGR of 14% between 2010 and 2021 to reach 830 GW by end of 2021. This has largely been possible due to favourable government policies that have provided incentives to the sector. This has led to an increase in the share of wind in the capacity mix, going from a miniscule 4% in 2010 to 10% in 2021. This is further set to rise to 15% by 2030. However, the recent commodity price increase has hit the sector hard, increasing risks for wind turbine manufacturers and project developers, and the Russia-Ukraine crisis has caused further price increase and supply chain disruption. In light of this, GlobalData has identified which countries are expected to add the majority of wind power capacity out to 2030. Get ahead and download this whitepaper for more details on the current state of the Wind Power Market.
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Wednesday. The power industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Power Technology