Drax Group agreed on 1 June to acquire Bluefield Solar Income Fund in an all-cash deal worth about £548m, implying an enterprise value of about £1.08bn.
Why Drax Group plc is buying Bluefield Solar Income Fund Limited
Drax said it expects returns to significantly exceed its weighted average cost of capital and that the deal supports its planned £2bn of flexible-energy investment between 2025 and 2031 without changing its capital allocation policy. The fund's portfolio gives Drax its first solar and wind generation.
“This is a transformational moment for Drax.”
Deal terms and financing
BSIF shareholders receive 92.57p a share in cash through Drax Smart Generation Holdco, plus a second interim dividend of 2.25p. The cash price was a 28% premium to the 72.20p close on 4 November 2025, before the offer period began, and about 11% below the 104.52p NAV per share at 14 May.
Regulatory approvals and timing
The deal needed approval by 75% of votes cast at a BSIF shareholder meeting and court sanction. It became effective on 31 July 2026.
Market context
Bluefield generated about £130m of EBITDA in its 2025 financial year. With the acquisition, Drax's renewable and flexible assets, including battery and gas peaking development sites, exceed 3GW alongside the 2.6GW Drax Power Station.
