Drax has launched the fourth and final tranche of its £300m share buyback programme with a target of repurchasing up to £75m of its shares. The move comes coincidentally after the decision by the company not to chase the purchase of the Harmony Investment Trust following a counter bid at close to NAV by funds managed by Foresight Group. We do not think this means that the company will not pursue other opportunities for investment in other real assets but we do think it emphasises the strong financial discipline exercised by the company. Last night also saw progress on the bridging mechanism with key enabling legislation making progress in Parliament.
