Slaughter and May is advising Drax Group on the proposed sale of Drax Generation Enterprises Limited

Slaughter and May is advising Drax Group on the proposed sale of Drax Generation Enterprises Limited (“DGEL”), which holds four Combined Cycle Gas Turbine (“CCGT”) power stations, to VPI Generation Limited for consideration of £193.3 million, subject to customary adjustments. This includes £29.0 million of contingent consideration associated with the development of a new CCGT at Damhead Creek.

The transaction is subject to certain customary closing conditions, including anti-trust, and completion will take place by 31 January 2021.

DGEL also holds the Drax Group’s Scottish hydro assets and is the shareholder of SMW Limited (the owner of the Daldowie fuel plant). These assets, shares and associated employees are to be transferred out of DGEL prior to completion and will be retained by the Group. Slaughter and May is also advising Drax on that pre-completion reorganisation.

Slaughter and May worked closely with the Drax in-house legal team led by Hillary Berger, Drax Group General Counsel.