The shareholders of Aquila European Renewables plc have voted against the option to potentially combine the company with another listed investment firm "by way of a section 110 scheme of reconstruction under the Insolvency Act 1986," it was disclosed on Friday.
As previously reported, the renewable energy fund received an indicative non-binding merger proposal from Octopus Renewables Infrastructure Trust plc and two other companies at end-2023 and then opened its books two months later to launch a process of mutual due diligence with “multiple interested parties.”
According to Aquila’s latest statement, the three indicative proposals "represented an implied look through value ranging from a small premium to a discount" to the current share price of the company. Following shareholder feedback, the board has determined that presently, a so-called Section 110 combination "is not value enhancing when weighed against the other potential options open to the company."
Aquila said it will continue to review its options, among which are a wind-down of the company, a potential sale of some or all of its assets, and the possible continuation of the company in its present form. Further updates on the matter are expected to be made by the end of the second quarter.
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