British Drax Group Declares $652 Million Acquisition of Pinnacle Renewable Energy

SEATTLE (Scrap Monster): British Drax Group and one of its subsidiaries Drax Canadian Holdings have reached an agreement to acquire B.C-based Pinnacle Renewable Energy for a sum of $652 million. As per the deal, Drax Group will purchase all issued and outstanding common shares of the pellet maker. The deal covers the assumption of net debt and Pinnacle’s non-controlling interests in its joint ventures.

According to news release by Pinnacle Renewable Energy, the transaction will be implemented pursuant to a plan of arrangement under the Business Corporations Act (British Columbia). The closing of the deal is subject to shareholders’ approval, approvals from the governmental and regulatory bodies and the final approval by the Supreme Court of British Columbia. The company shareholders have already entered into voting support agreements in favour of the deal, it noted.

Duncan Davies, CEO, Pinnacle Renewable Energy said that the transaction represents the best course of action for the company and its shareholders. It will deliver immediate, significant and certain cash value to its shareholders. The combination of Pinnacle and Drax will create a global leader in sustainable biomass, he added.

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