Foresight Group LLP has announced a possible cash offer to acquire Harmony Energy Income Trust PLC (HEIT), valuing the company at £190.8 million. If accepted, HEIT shareholders will receive 84.0 pence per share, representing a significant premium to HEIT’s recent trading prices. This offer marks a strategic move by Foresight, a prominent investment manager in energy transition and infrastructure, to further strengthen its position in the UK battery storage sector.

The bid represents a 29% premium over HEIT’s closing share price of 65.2 pence on 14 March 2025 and a 76% premium compared to its 47.8 pence closing price on 29 May 2024, just before HEIT initiated an asset sale process. While HEIT had already progressed in negotiations to sell its entire portfolio to another party, its board has now indicated that the Foresight offer could provide a superior outcome for shareholders.

Foresight, known for its extensive investments in renewable energy and storage, sees HEIT’s battery energy storage system (BESS) portfolio as a strong complement to its existing assets. The potential acquisition aligns with Foresight’s broader strategy of expanding its footprint in the energy storage market, which plays a crucial role in supporting renewable energy integration and grid stability in the UK.

The UK battery storage market is experiencing rapid growth, with key players such as Gresham House Energy Storage Fund (GRID), Harmony Energy Income Trust (HEIT), and Invinity Energy Systems (IES) driving investment in large-scale BESS projects. Companies like Fluence Energy and Siemens Energy are also advancing innovative storage solutions, which are essential for balancing the increasing share of renewable energy in the national grid. The demand for flexible energy storage is being fueled by ambitious government net-zero targets and increasing penetration of wind and solar power.

Grid-scale battery projects are becoming a cornerstone of the UK’s energy transition, enhancing stability and efficiency while reducing reliance on fossil fuels. Investment in this sector is expected to accelerate as grid flexibility and storage capacity become key priorities for policymakers and industry leaders. The HEIT takeover bid highlights the growing investor confidence in BESS and the sector’s long-term profitability.

The HEIT board is now in discussions with Foresight to finalise the terms of the offer. However, there is no certainty that a firm offer will be made. Foresight has secured an irrevocable undertaking from Harmony Energy Limited, which owns approximately 12.04% of HEIT’s shares, to support the offer if it proceeds.

With an offer period now officially commenced, HEIT shareholders will await further announcements as negotiations progress, while the wider battery storage sector continues to gain momentum in shaping the UK’s renewable energy future.

#BatteryStorage #RenewableEnergy #EnergyTransition #GridStability #SustainableInvesting

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