Drax Group (LSE:DRX) has agreed to acquire Bluefield Solar Income Fund Ltd (LSE:BSIF, FRA:5B3) in a cash deal valuing the renewable infrastructure investor at approximately £548 million.
Directors of the Bluefield investment trust said they unanimously intend to recommend that shareholders accept the deal.
Under the terms of the offer, Bluefield shareholders will receive 92.574p in cash for each share and will also retain a second interim dividend of 2.25p per share due to be paid this month.
Including the dividend, the transaction is valued at around £561 million and equates to an enterprise value of about £1.08 billion.
The total offer represents a 31% premium to Bluefield’s closing share price on 4 November 2025, the day before the offer period began, though the shares traded above 97p last summer and were north of 120p in early 2023.
The transaction follows a formal sale process launched by the investment trust in November, after shareholders opposed Bluefield’s previous proposal to shift into an integrated power producer model.
The board subsequently launched a process to explore other value-maximising alternatives, including a sale of the company, after investors expressed concerns over the trust’s persistent discount to net asset value.
Bluefield chair Michael Gibbons said: “The BSIF board is pleased with the conclusion of this process and believes the acquisition at a 31% premium… represents a highly attractive outcome for BSIF shareholders and a compelling opportunity to crystalise value in cash.”
Yorkshire-based Drax, which produces power from burning biomass and natural gas, said the acquisition would significantly expand its renewable generation business by adding a portfolio of operating and development-stage solar, wind and battery storage assets.
Bluefield’s portfolio includes about 852MW of operating renewable generation capacity and a development pipeline of more than 2.8GW.
Drax chief executive Will Gardiner said: “BSIF could potentially be the biggest acquisition our business has ever made.”
The acquisition is expected to be completed in the third quarter of 2026, subject to shareholder, court and regulatory approvals.
