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Woodford exit sparks Drax share price fall
by Danielle Levy on Oct 16, 2013 at 09:10
The bad news continued into early trading, with Drax down a further 1.7% at 9:05, representing a 4.4% fall since the news first hit that Woodford is to step down from his £13.8 billion Invesco Perpetual High Income and £10.5 billion Income funds. They will be taken over by his colleague Mark Barnett next April.
Invesco has been a long term holder of a 29% stake in Drax, reflecting his bullish views on UK power generation and support for Drax's biomass strategy.
Liberum Capital explained in a note: 'Given that Drax provides only a modest 2.6% full year 2014 dividend yield, its long term place in a high income portfolio may be questioned as Mr Woodford transitions out of Invesco.'
Woodford's Drax holding sits alongside Centrica, where he has a 5% stake.
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on Dec 10, 2013 at 12:57