Drax to buy Canada's Pinnacle for £226m

UK energy producer Drax on Monday said it was buying Canadian firm Pinnacle Renewable Energy for 11.30 Canadian dollars a share, valuing it at £226m.

Drax said the offer price for Toronto-listed Pinnacle also implied an enterprise value of CAN$741m, including CAN$356m of debt.

Pinnacle operates 2.5m of biomass capacity at sites in Western Canada and the Southeastern US, with a further 0.4m of capacity in development to be commissioned in 2021.