LONDON (dpa-AFX) - Drax Group plc (DRX.L), on Thursday, said it has agreed to acquire a 20% minority interest in Alabama Pellets, LLC - the joint venture which owns the Demopolis and Aliceville pellet plants - from The Westervelt Company for $29.7 million cash consideration.
The acquisition would increase the Group's interest in Alabama Pellets to 90% and provide Drax with economic control over a further about 130,000 tonnes of biomass production capacity per annum. The deal is expected to be completed in July 2021.
Westervelt is considered to be a Related Party under the UK Listing Rules with the proposed transaction constituting a Smaller Related Party Transaction under Listing Rule 11.1.10.
The acquisition of Pinnacle Renewable Energy Inc. included a change of control provision over Alabama Pellets. Drax has been in discussions with Alabama Pellets joint venture partners regarding future working relationships, including their minority interests. The remaining joint venture partner, Two Rivers Lumber Co., LLC, holds a 10% economic interest.
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