Gore Street Energy Storage Fund plc said the sale of its 22 MW Cremzow energy-storage asset in Germany has fallen through after a prospective buyer significantly reduced its offer at a late stage in negotiations.
The company said the sale and purchase agreement had reached an advanced stage of finalisation before the bidder altered its offer to a level the board judged to be "poor value for shareholders." The transaction will not proceed with that party, and the disposal is no longer considered at an advanced stage, Gore Street said.
Angus Gordon Lennox, chair of Gore Street, described the collapse as "unfortunate and frustrating" given how far the process had progressed. He attributed the buyer's decision to lower its bid to uncertainty triggered by requisitioned shareholder resolutions from activist investor Saba Capital Management, rather than to broader market conditions.
Lennox warned that the Saba resolutions could also have an adverse effect on other ongoing sale processes, as counterparties may perceive the company as a forced seller or face wider uncertainty over its strategic direction.
Gore Street has instructed its sell-side adviser, Alexa Capital, to re-engage with other interested bidders. The company said none of the parties involved in this or other concurrent sale processes are managed by Gore Street Investment Management, its investment manager.
The Cremzow asset generated revenues of £17.19 per MW per hour in the first quarter of fiscal year 2026/27, according to the company's disclosure.
Gore Street said it will continue to provide shareholders with updates on the Cremzow disposal and on parallel sale processes currently underway.
