Will a mystery suitor power up price of energy firm Drax

IS something in the works at power firm Drax? There are rumours circulating around the Square Mile that a takeover could be on the cards for the FTSE 250 company which owns the Drax Power Station in North Yorkshire.

The word is t hat an unknown energy company has got its eye on Drax and could even be in earlystage talks with the firm about a potential deal.

Dr axis on record as moving towards biomass and other renewable energy sources – and away from the old coal- fired power stations.

This is all part of its efforts to help create a much more environmentally friendly future. But like most companies, shares in Drax have come under pressure in recent months and the firm expects a hit to profits of about £60 million this year due to the pandemic.

Perhaps that recent fall has attracted the rumoured interested party. Drax declined to comment.

The chatter is that talks are focused on a price of around £3.40 per share, valuing Drax at £1.35 billion, which is pretty much near where the shares were trading in December.

That would power up the current price by around 50 per cent. An electrifying prospect.