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Drax Group PLC on Wednesday announced the sale of up to 90,000 small & medium-sized customer meter points from Opus Energy Group Ltd to EDF Energy Customers Ltd.
The transaction follows the completion of a strategic review of Opus’s non-core SME energy supply business.
Opus was acquired by Drax in 2017 for £367 million, of which £159 million was goodwill, £224 million intangible assets and £16 million other net liabilities.
In 2023, following a reorganisation, goodwill of £145 million was reallocated between Opus and Drax Energy Solutions and the remaining £14 million of goodwill was impaired.
Drax said over the past seven years, elements of the acquired business have been transferred to Drax Energy Solutions, the group’s core Industrial & Commercial energy supply business.
Those transfers include the renewables business holding the group’s power purchase agreements with renewable generators, and certain other customers.
Drax believes these measures further support its decarbonisation strategy and the development of its Energy Solutions business which is focused on I&C customers, renewable power and energy services.
The Energy Solutions business is unaffected by the sale of the Opus SME assets and there is no change to the group’s Energy Solutions earnings before interest, tax, depreciation and amortisation expectations as a result of this process.
The deal is subject to regulatory approval and is expected to complete in the third quarter of 2024.
Shares in Drax fell 0.3% to 509.95 pence in London on Wednesday morning.
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