Drax Group manages to buy Louisiana Pellets assets

Drax Group updated the market on progress made on its bid to acquire “substantially all of the assets” of Louisiana Pellets and Texas Pellets on Monday.

The FTSE 250 firm had announced on 27 February that it was participating in auction processes for acquisition out of bankruptcy for both businesses.

It said that, following the conclusion of an auction on 30 March, it had been provisionally successful in its bid to acquire the assets of Louisiana Pellets.

“The auction price was $35.4m,” its board confirmed in a statement.

“A court hearing to approve the auction result is scheduled to take place in early April, with completion of the sale expected by month-end.”

The process for the sale out of bankruptcy of the assets of Texas Pellets had been postponed, however.

“Drax remains an interested party in the acquisition of these assets.”