Telecom Plus sells stake in energy business to Drax Group for £71m

FTSE 250 listed gas, electricity and broadband provider Telecom Plus has completed the sale of its 20% stake in Opus Energy Group to Drax Group, a electrical power generation firm, for about £71m.

Following approval by the European Commision, Drax bought the stake in Opus Energy as part of its strategy to improve earnings and diversify its markets, while Opus Energy would also complement its existing Haven Power business.

Drax chief executive Dorothy Thompson said: "Today we took another step forward in delivering our Group-wide strategy. This addition to our existing retail offer will see our challenger brands, Opus Energy and Haven Power, working to provide the UK's businesses with affordable, reliable and renewable energy."

Telecom Plus said that it return the proceeds from the sale to shareholders through a £70m tender offer after the publication of results for the 2017 financial year in June.

Shares in Telecom Plus were down 0.25% to 1,204p at 1237 GMT and shares in Drax Group were up 0.92% to 374.90p at 1248 GMT.