Second suitor enters the fray for Drax

摘要

Drax Group has announced that it has received interest from a second potential bidder for its operations. The new approach was made by a consortium consisting of Apollo Management, Texas Pacific Group Europe and TowerBrook Capital Partners (UK). Drax said that the proposal is subject to a number of conditions, including due diligence and financing, and is an alternative to its proposed listing on the stock exchange. Whilst the bid represents a gross consideration of 2.075bn pounds (which is more than the 1.9bn pounds being offered by the Constellation-led bid, announced in mid September), Drax is reportedly still maintaining that both bids undervalue the asset with regards to its bonds valuation on the debt market, which currently suggests a value of 1.4bn pounds.