Octopus Renewables trust makes bid for Aquila European Renewables
The board of AERI noted this morning’s statement and confirmed the 'unsolicited proposals'.
According to a regulatory filing this morning (22 December), the £506m market cap ORIT has «sought on several occasions» during 2023 to engage the board of £274m market cap AERI with a view to a combination of the trusts.
The ORIT board cited a variety of factors, including the «complementary portfolios», «greater technological diversification» and «substantial portfolio of operating assets», as cause to merge the vehicles into one of the largest London-listed renewable energy trusts.
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Both trusts are currently trading at discount, like the majority of investment companies, with ORIT on a 16.2% discount and AERI trading 30.3% below net asset value, according to data from the Association of Investment Companies.
Over the course of 2023, ORIT has approached AERI in March, May and November, along with this public statement. Following «no material engagement», ORIT has consulted with a number of AERI shareholders and received support for «substantive discussions regarding the proposed combination».
The board of AERI noted this morning's statement and confirmed the «unsolicited proposals».
It referred to a 14 December 2023 announcement made by the board of AERI that confirmed the trust is exploring «a number of different initiatives to address the issues facing the sector and to secure recognition in the company's share price of the real underlying value of the company's portfolio».
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It added the board has «committed to consider broader options», including a potential merger
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