Drax Group plc (LON:DRX) has reached agreement for the sale of up to 90,000 Small & Medium-sized (SME) customer meter points from Opus Energy Group Limited (Opus) to EDF Energy Customers Limited.
The transaction is an asset sale for the majority of the Opus customer meter points and follows the completion of a strategic review of the Group’s non-core SME energy supply business.
Opus was acquired by Drax in 2017. Over the past seven years elements of the acquired business have been transferred to Drax Energy Solutions, the Group’s core Industrial & Commercial (I&C) energy supply business(1). Those transfers include the renewables business holding the Group’s Power Purchase Agreements with renewable generators, and certain other customers.
Drax Group believes that these measures further support its decarbonisation strategy and the development of its Energy Solutions (Customers) 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 EBITDA expectations as a result of this process.
The transaction is subject to regulatory assessment and is expected to complete in Q3 2024.
Notes:
(1) In 2017 Drax Group acquired Opus 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 on a relative value approach as specified by IAS 36, and the remaining £14 million of goodwill was impaired.
As at 31 December 2023 £218 million of the intangible assets had either been amortised or impaired, leaving a de minimis amount in relation to Opus Energy carried forward into 2024.
Notes 2.4 and 5.2 of the 2023 Annual Report and Accounts provide further details.
