Drax has agreed a recommended all-cash takeover of Bluefield Solar Income Fund (BSIF), valuing the listed renewables investment company at around £548m and marking a significant step up in the energy group’s UK clean power ambitions.
Once known for its iconic power station, Drax now has a diverse range of renewable power generation and storage facilities that span biomass, pumped hydro, and gas.
Today’s deal will boost the firms’ solar and wind capabilities.
Under the terms of the deal, BSIF shareholders will receive 92.574p in cash per share, with qualifying holders also retaining a 2.25p second interim dividend due on or around 15 June, bringing the total to 94.824p per share.
Including the dividend, the offer represents a 31% premium to BSIF’s closing price of 72.20p on 4 November 2025, the day before the offer period began, and a 21% premium to the one-month volume weighted average price.
It does, however, come at a 9% discount to BSIF’s net asset value of 104.52p at the end of March. This may have implications for the wider sector, which has long faced questions about the valuations of underlying assets.
The deal will give Drax direct access to a roughly 0.9GW portfolio of operating and under-construction solar and wind assets, plus a development pipeline of more than 1GW (2.9GW gross) to be built out over the next decade.
That sits alongside Drax’s existing 2.2GW of FlexGen assets and 2.6GW of biomass, broadening its UK generation base and helping to optimise its overall energy mix.
In the year to 30 June 2025, BSIF generated underlying earnings of around £95m, EBITDA of £130m and operating free cash flow of £118m, with 57% of revenue underpinned by long-term government-backed schemes and the remaining 43% from power purchase agreements.