The Gresham House Energy Storage Fund (GRID) has rebuked activist shareholder PrimeStone Capital’s call to sell the trust by September this year.
In an announcement published on the London Stock Exchange today (15 September), GRID’s board said that “initiating a formal sale process for the company now would not be in the best interests of shareholders”, having taken part in “extensive consultation” with its shareholders over the summer.
On 30 June, PrimeStone Capital published an open letter asking the board to initiate a formal sale process due to GRID’s lagging share price, proposing a target date of September this year.
The firm, which holds a 7% stake in GRID, stated the sale of the trust’s battery storage assets could unlock an intrinsic value upwards of 140p per share, compared with the 80p share price recorded at time of writing.
The proposed sale was backed by the likes of the MIGO Opportunities Trust fund managers Tom Treanor and Charlotte Cuthbertson, who said the sale of the company is “likely to elicit the best outcome for shareholders”.
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However, in its letter today, GRID’s board said there are three key reasons why keeping hold of the investment company is in the best interests of its shareholders, having liaised with its financial advisers.
It stated: “The current strategy, as set out at the November 2024 Capital Markets Day and updated in the May 2026 Capital Markets Webinar, is delivering strong NAV growth, as demonstrated in the recently announced uplift of 16% to the NAV.
“The market has started to recognise the progress being made, with GRID delivering significant share price returns over the past 12 months, notable within the renewables and infrastructure sectors.”
Finally, the board added there is “a lot more growth to come which is yet to be recognised in the NAV”, with longer-duration new-build and broadening revenue streams occurring within the portfolio, which are “well progressed but not yet in the reported NAV”.
“The board will, as always, continue to focus on maximising value for shareholders as a whole and continues to welcome investor engagement as the company progresses along its growth journey,” it stated. “The company is due to report its interim results on 23 September 2026 in which it will update the market on its financial results and the outlook for the remainder of the year.”
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Commenting on the update, Richard Williams, senior analyst at QuotedData, said GRID’s 16% uplift since the end of June provides “tangible evidence” that the trust’s investment programme is creating value, with further projects offering “scope for more”.
“Launching a sale process before that value is reflected in the portfolio risks handing some of the upside to a buyer rather than shareholders,” he reasoned. “However, the board has bought itself time rather than won the argument.
“Ultimately, the discount still needs to close and shareholders need to see the value being created reflected in the share price. If GRID continues to trade at a substantial discount despite delivering on its strategy, PrimeStone’s argument for testing what a third-party buyer would pay will become increasingly difficult to resist.”
Run by lead portfolio manager Ben Guest since its launch in 2018, the £564m GRID portfolio has returned 24% since inception, compared with its average peer in the IT Renewable Energy Infrastructure’s gain of 3.6%, according to FE fundinfo data. However, it has been volatile, having done so with a maximum drawdown – which measures the most money lost had investors bought and sold at the worst possible times – of 64.5%. In comparison’s its average peer’s drawdown resides at 19.5% over the same time frame.
The trust is currently trading on a 24.3% discount to its NAV, according to AIC data.
