AQUILA EUROPEAN RENEWABLES PLC

author: "Jack McLaren"
date: 2025-12-11 22:00:00+00:00
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THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. If you are in any doubt about the contents of this document or what action you should take, you should consult your stockbroker, bank manager, solicitor or other appropriate independent financial adviser who is authorised under the Financial Services and Markets Act 2000 (as amended) (“FSMA”) if you are resident in the United Kingdom, or who is duly authorised under the European Communities (Markets in Financial Instruments) Regulation 2017 (as amended) or Investment Intermediaries Act 1995 (as amended) if you are resident in Ireland, or another appropriately authorised independent financial adviser if you are resident in a territory outside Ireland or the United Kingdom.

If you have sold or otherwise transferred all of your ordinary shares in the capital of Aquila European Renewables plc (“Ordinary Shares”, and the “Company”, respectively), please send this (but not any accompanying personalised Form of Proxy) at once to the purchaser or transferee or to the stockbroker, bank or other agent through or by whom the sale or transfer was effected, for onward delivery to the purchaser or transferee. This document should not, however be forwarded or transmitted in or into any jurisdiction in which such act would constitute a violation of the relevant laws and regulations in such jurisdiction. If you have sold or transferred only part of your holding of Ordinary Shares you should retain this document and any accompanying documents and contact the stockbroker, bank or other agent through or by whom the sale or transfer was effected immediately.

AQUILA EUROPEAN RENEWABLES PLC

(Incorporated in England and Wales, registered number 11932433)

(Registered as an investment company under section 833 of the Companies Act 2006)

Recommended proposal for the adoption of a B Share Scheme to allow for the return of capital to Shareholders

and

Notice of General Meeting

1. Your attention is drawn to the letter from the Chair on page 6, which recommends that you vote in favour of the resolutions to be proposed at the General Meeting referred to below. Capitalised terms used throughout this document shall have the meanings ascribed to them in the section titled Definitions of this document, unless the context otherwise requires.

Notice of General Meeting of the Company to be held at 1:00 p.m. on 8 January 2026 at the offices of CMS Cameron McKenna Nabarro Olswang LLP, at Cannon Place, 78 Cannon Street, London, EC4N 6AF, United Kingdom (the “General Meeting”) is set out at the end of this document. Whether or not you intend to be present at the General Meeting you are urged to complete and return a Form of Proxy, in accordance with the instructions set out in the notes to the Notice of General Meeting, as soon as possible and in any event by no later than 1:00 p.m. on 6 January 2026.

To be valid, Forms of Proxy for use at the General Meeting must be completed and returned in accordance with the instructions printed thereon to the Company’s registrar, Computershare Investor Services (the “Registrar”) at The Pavilions, Bridgwater Road, Bristol, BS99 6ZY, United Kingdom so as to arrive no later than 1:00 p.m. on 6 January 2026.

As an alternative to completing and returning the accompanying Form of Proxy, you may submit your proxy electronically by accessing the Registrar’s online voting portal www.investorcentre.co.uk/eproxy. For security purposes, you will be asked to enter the control number, your shareholder reference number (SRN) and personal identification number (PIN) to validate the submission of your proxy online. The control number and members’ individual SRN and PIN numbers are shown on the accompanying Form of Proxy. If you are a member of CREST you may be able to use the CREST electronic proxy appointment service. In addition, institutional investors may be able to appoint a proxy electronically via the Proxymity platform. Proxies submitted via a designated voting platform (such as CREST or Proxymity) for the General Meeting must be transmitted so as to be received by the Registrar no later than 48 hours (excluding weekends and any bank holiday) before the time of the General Meeting. Proxies sent electronically must be sent as soon as possible and, in any event, so as to be received no later than 1:00 p.m. on 6 January 2026.

The Notice of General Meeting and the Form of Proxy will be submitted to the National Storage Mechanism and shortly be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism and on the Company’s website at https://www.aquila-european-renewables.com/.

All references to times in this document are to London time, unless otherwise stated.

This document is not a prospectus or prospectus equivalent document. This document does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase or subscribe for any securities, or any offer or invitation to sell, or any solicitation of any offer to purchase or subscribe for such Ordinary Shares by any person in any circumstances or jurisdiction in which such offer or solicitation is unlawful.

No application will be made to (i) the Financial Conduct Authority or to the London Stock Exchange for any of the B Shares to be admitted to the Official List or to trading on the London Stock Exchange’s main market for listed securities or (ii) Euronext Growth for any of the B Shares to be admitted to trading on Euronext Growth, nor will any of the B Shares be listed or admitted to trading on any other securities or investment exchange.

The availability of the B Share Scheme and a Return of Capital to Shareholders who are not resident in the United Kingdom may be affected by the laws of the relevant jurisdiction in which they are located. Persons who are not resident in the United Kingdom should read the paragraph headed “Overseas Shareholders” set out in Part 2 of this document and should inform themselves about, and observe, any applicable legal or regulatory requirements.

The B Shares will not be registered under the US Securities Act or with any state or other jurisdiction of the United States, and none of the B Shares may be reoffered, resold, pledged or otherwise transferred in or into the United States or to any US persons except pursuant to a transaction that has been registered under the US Securities Act and with the relevant state and other jurisdictions or a transaction that is exempt from, or otherwise not subject to, the securities laws of such jurisdictions.

Neither the B Shares nor this document have been approved, disapproved or otherwise recommended by any US federal or state securities commission or other regulatory authority or any non-US securities commission or regulatory authority, nor have such authorities passed upon or endorsed the merits of the B Share Scheme or a Return of Capital or confirmed the accuracy or determined the adequacy of this document. Any representation to the contrary is a criminal offence in the United States.

This document does not constitute an offer or invitation to participate in the B Share Scheme or a Return of Capital in or from any jurisdiction in or from which, or to or from whom, it is unlawful to make such an offer or invitation to participate under applicable securities laws or otherwise.

No person has been authorised to give any information or make any representation other than those contained in this document and, if given or made, such information or representation must not be relied on as having been so authorised. The delivery of this document shall not, under any circumstances, create any implication that there has been no change in the affairs of the Company since the date of this document or that the information in it is correct at any subsequent time.

This document may contain "forward-looking statements" with respect to certain of the Company's plans and its current goals and expectations relating to its future financial condition, performance, strategic initiatives, objectives and results. Forward-looking statements sometimes use words such as "aim", "anticipate", "target", "expect", "estimate", "intend", "plan", "goal", "believe", "seek", "may", "could", "outlook" or other words of similar meaning. By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which are beyond the control of the Company.

As a result, the actual future financial condition, performance and results of the Company may differ materially from the plans, goals and expectations set forth in any forward-looking statements. Any forward-looking statements made in this document by or on behalf of the Company speak only as of the date they are made. The information contained in this document is subject to change without notice and except as required by applicable law or regulation, the Company expressly disclaims any obligation or undertaking to publish any updates or revisions to any forward-looking statements contained in this document to reflect any changes in the Company's expectations with regard thereto or any changes in events, conditions or circumstances on which any such statements are based.

Table of Contents

EXPECTED TIMETABLE OF EVENTS 5

Part 1 LETTER FROM THE CHAIR 6

Part 2 DETAILS OF THE B SHARE SCHEME 12

Part 3 RIGHTS AND RESTRICTIONS ATTACHED TO B SHARES 15

Part 4 RISKS ASSOCIATED WITH THE PROPOSAL 18

Part 5 UNITED KINGDOM TAXATION 20

NOTICE OF GENERAL MEETING 23

DEFINITIONS 27

EXPECTED TIMETABLE OF EVENTS


Publication of this circular	15 December 2025
Latest time for receipt of Forms of Proxy and electronic appointments of proxies in respect of the General Meeting	1:00 p.m. on 6 January 2026
Record time and date for the General Meeting	6.30 p.m. on 6 January 2026
General Meeting	1:00 p.m. on 8 January 2026

Notes

- 1. All references to time in this document are to London time, unless otherwise stated.
- The times and dates set out in the expected timetable above and mentioned throughout this document may be adjusted by the Company. If any of the times and/or dates change, the revised time(s) and/or date(s) will be notified to Shareholders by an announcement through a Regulatory Information Service.
LETTER FROM THE CHAIR

Aquila European Renewables plc

(Incorporated in England and Wales with registered number 11932433)

(Registered as an investment company under section 833 of the Companies Act 2006)


Directors Robert Naylor Myrtle Dawes David MacLellan Kenneth MacRitchie Patricia Rodrigues	Registered Office 4th Floor 140 Aldersgate Street London EC1A 4HY United Kingdom 15 December 2025

Dear Shareholder,

Recommended proposal for the adoption of a B Share Scheme to allow for the return of capital to Shareholders and Notice of General Meeting

Introduction

On 30 September 2024, Shareholders approved a change in the Company’s investment objective and policy to facilitate a managed wind-down of the Company and to realise its assets in an orderly manner. To assist the Company with returning cash, in the form of capital or by way of dividend, to Shareholders as part of the Company’s managed wind-down process, the Company cancelled, via court order, the amount standing to the credit of the Company’s share premium account.

The net proceeds from realisations will be used to make timely returns of capital to Shareholders (net of provisions for the Company’s costs and expenses) in such manner as the Board considers appropriate.

After careful consideration, the Board believes that one of the fairest and most efficient way of returning substantial amounts of cash to Shareholders is by means of a bonus issue of redeemable B Shares (with a nominal value of one cent each) which would then be immediately redeemed by the Company in consideration for a cash payment equal to the amount treated as paid up on the issue of the B Shares. Adoption of the B Share Scheme is conditional on the approval of Shareholders at the General Meeting to be held on 8 January 2026, notice of which is set out at the end of this document. Importantly if Shareholders pass the required Resolutions at the General Meeting, the B Share Scheme will be able to be implemented, and cash returned to Shareholders, without any further action being required by Shareholders. Furthermore, once the B Share Scheme has been put in place, the Company will be able to use the B Share Scheme to return capital to Shareholders on a periodic basis as and when assets of the Company are sold. Any B Shares issued under the B Share Scheme will not be listed or admitted to trading on the London Stock Exchange or Euronext Growth or any other securities or investment exchange.

The quantum and timing of any Return(s) of Capital to Shareholders under the B Share Scheme (if any) will be at the discretion of the Board and will be dependent on the realisation of the Company’s investments and its liabilities, general working capital requirements and the amount and nature (from a tax perspective) of its distributable reserves from time-to-time. On 9 September 2025, the Company completed the court-approved reduction of the full amount standing to the credit of its share premium account, pursuant to which €255,642,627.68 was applied to a separate special distributable reserve (the “Special Reserve”). Since the cancellation of the share premium account, €27,784,976 has been paid by the Company for share buy-backs and therefore the remaining €227,887,651.68 is currently available for capital distribution (but the total amount shall be further reduced by any further buy-backs undertaken by the Company).

On 23 October 2025, the Company announced that it had entered into sale and purchase agreements with funds advised by Aquila Capital for the sale of its Danish and Greek assets (Holmen II, Svindbaek and Desfina) for a total consideration of approximately €61.9 million. The disposals were subject to regulatory and other customary approvals. Today, on 15 December 2025, it was announced that the sale of Holmen II and Svindbaek had completed for €36.6 million but that the Desfina disposal remains subject to ongoing customary approvals and, as a result of the introduction of new FDI regulations in Greece following the signing of the share purchase agreement, is now expected to complete in February 2026. Together with the sale of Sagres, which completed in June 2025, this represents a total cash consideration of €78.3 million.

The Board continues to progress the divestment of the remainder of the Company’s portfolio in accordance with the Company’s managed wind-down investment policy.

An initial Return of Capital is expected to be made by the Company by late January 2026. The Company expects the initial Return of Capital to be no less than €33.9 million, representing the majority of proceeds received from the disposals in 2025 (being Sagres, Holmen II and Svindbaek), excluding an appropriate cash buffer to ensure the Company can continue to meet its liabilities and commitments. Combined with the dividend declared on 24 November 2025 and paid on 12 December 2025 of €2.5 million and the proceeds of the Greek Disposal, the amount is equivalent to the €63.0 million referred to in the announcement released by the Company on 23 October 2025.

The Company intends to execute another Return of Capital promptly following the completion of the Desfina assets again representing the majority of proceeds received from the sale.

The purpose of this document is to provide Shareholders with further details of the proposed B Share Scheme and to give notice of the General Meeting at which the Resolutions required to adopt and implement the B Share Scheme will be proposed, including amendments to the Company’s Articles to allow for the issue and redemption of B Shares.

All Shareholders are encouraged to vote in favour of the Resolutions to be proposed at the General Meeting and, if the Ordinary Shares are not held directly, to arrange for their nominee to vote on their behalf.

B Share Scheme

Advantages of returning cash via B Shares

The advantages of returning capital via the B Share Scheme rather than via a tender offer are as follows:

As it is currently anticipated that no further circulars will need to be prepared to effect any future Return(s) of Capital which would be the case if we were to implement tender offers, it reduces costs for the Company. In the event the Resolutions are passed at the General Meeting details of any Return of Capital would be notified to Shareholders through a Regulatory Information Service and, subject to any change in existing United Kingdom tax law (and in contrast to a tender offer where stamp duty at the rate of 0.5 per cent. of the tender price is payable), no stamp duty would be payable on a Return of Capital.

Subject to the Resolutions being passed at the General Meeting, it is not anticipated that Shareholders will be required to take any further action to give effect to the first Return of Capital or any further Return(s) of Capital but this will be dependent on the amount and nature of the Company’s distributable reserves from time-to-time. In light of the capital returns under the B Share Scheme being mandatory and applicable to all Shareholders on a pro rata basis, all Shareholders are treated equally and no further action would be required from any Shareholders in order for them to be able to participate in the B Share Scheme.

There is greater certainty for the Company regarding the quantum of Return(s) of Capital to Shareholders (unlike tender offers).

Disadvantages of returning cash via B Shares

However, for some Shareholders, there may be some disadvantages in returning capital via the B Share Scheme, relating to the timing, mandatory nature of the scheme and the way they structure their shareholding in the Company. One consequence of this straightforward process is that Shareholders will receive their cash payment in accordance with the structure within which they hold their Ordinary Shares when the B Shares are issued.

How will cash be returned via the B Shares?

Subject to the Resolutions being passed at the General Meeting, the B Share Scheme will provide the Company with a mechanism to return cash to Shareholders at such time or times as the Board may, at its absolute discretion, determine. B Shares would be issued to Shareholders (at no cost to Shareholders) pro rata to their holdings of Ordinary Shares at the time of issue of the B Shares and, shortly thereafter, redeemed and cancelled in accordance with their terms for an amount not exceeding the amount treated as paid up on the issue of the B Shares. The Company will not allot any fractions of B Shares and the entitlements of each Shareholder will be rounded down to the nearest whole B Share.

Following the redemption and cancellation of the B Shares, the redemption proceeds will be sent to Shareholders, either through CREST to uncertificated Shareholders or via cheque or electronic payment (if there is an electronic payment mandate on file) to certificated Shareholders. Each issue and redemption of B Shares would be announced via a Regulatory Information Service.

Further details of the B Share Scheme are set out in Part 2 of this document.

Taxation of the B Share Scheme

The structure of a B Share Scheme should result in UK individual taxpayers receiving their cash proceeds on the redemption of the B Shares as capital (to the extent that the B Shares are issued as paid up out of amounts standing to the credit of the Special Reserve). Based on current UK tax law and HMRC published practice, it is expected that each redemption of B Shares should be treated as a disposal by the Shareholder of their Ordinary Shares for UK tax purposes. This may, subject to the Shareholder’s individual circumstances and any available exemption or relief, give rise to a chargeable gain (or allowable loss) for the purposes of UK taxation of capital gains.

Each redemption of B Shares should be treated as the receipt of an income distribution for corporate Shareholders for UK tax purposes.

The UK tax treatment described above refers only to B Shares to the extent that they are issued as paid up out of amounts standing to the credit of the Special Reserve. Any issue (and subsequent redemption) of B Shares issued as paid up otherwise than out of amounts standing to the credit of the Special Reserve may be subject to different tax treatment and, in particular, the issue and redemption may give rise to an income distribution in the hands of individual Shareholders for UK tax purposes.

For further information regarding UK taxation on redemptions of B Shares please see Part 5 of this document.

Further information on the B Shares

No share certificates will be issued in relation to the B Shares and no CREST accounts will be credited with any such B Shares.

No application will be made to (i) the Financial Conduct Authority or to the London Stock Exchange for any of the B Shares to be admitted to the Official List or to trading on the London Stock Exchange’s main market for listed securities or (ii) Euronext Group for any of the B Shares to be admitted to trading on Euronext Growth, nor will any of the B Shares be listed or admitted to trading on any other securities or investment exchange.

The B Shares will be non-transferable, non-equity shares and will have limited rights. The rights and restrictions attached to the B Shares are set out more fully in Part 3 of this document.

Shareholders should note that the default payment currency is Euro, however, shareholders are expected to be able to elect to have their Return of Capital paid in Sterling. The process for Shareholders to elect to receive funds in Sterling is expected to be communicated to Shareholders via a Regulatory Information Service in advance of any Return of Capital being made.

DIVIDENDS

The Company's ability to maintain the historic level and frequency of distributions will decrease as the sale programme progresses through the managed wind-down period. Distributions will still be required, however, to ensure that the Company's investment trust status is maintained through the process.

In addition to the level of dividend payments declining as assets are realised and as announced on 13 February 2025, the Board implemented a change in the Company’s future dividend policy. The Board will no longer be able to provide forward guidance as to the level of dividend for the year ahead which will be covered by earnings and taking into account the Company’s liquidity position. Additionally, the Board will no longer seek to smooth the level of dividend over a financial year to reduce the impact of the seasonality of earnings.

GENERAL MEETING

The Proposal is subject to Shareholder approval. The Notice of General Meeting, that is to be held at 1:00 p.m. on 8 January 2026 to be held at the offices of CMS Cameron McKenna Nabarro Olswang LLP, at Cannon Place, 78 Cannon Street, London, EC4N 6AF, United Kingdom, is set out at the end of this document. The Resolutions proposed at the General Meeting will be voted on by way of a poll. In accordance with the Articles, all Shareholders entitled to vote and who are present in person or by proxy at the General Meeting shall have one vote in respect of every Share held.

Shareholders are strongly encouraged to appoint the Chair of the General Meeting as their proxy to vote on their behalf at the General Meeting. This should ensure that your votes are registered.

Details of the resolutions are set out below:

- 1. Resolution 1: Adoption of New Articles

Resolution 1 is proposed as a special resolution and relates to the adoption of New Articles that set out the rights and restrictions attached to the B Shares as described in Part 3 of this document.

- 1. Resolution 2: Capitalisation of Company reserves

Resolution 2 (which is conditional upon Resolution 1 being passed) is proposed as an ordinary resolution and authorises the Directors to capitalise from time to time any sums standing to the credit of any reserve of the Company (including, in particular, the Company’s new special distributable reserve created through the cancellation of the full amount of €255.6 million which was standing to the credit of the Company’s share premium account) and to apply such sums (less any part of the used by the Company as part of their buyback programme) for the purposes of paying in full up to 30,000,000,000 B Shares to be allotted and issued to Shareholders pro rata to their holdings of Ordinary Shares at the Record Date in respect of the relevant issue of B Shares.

- 1. Resolutions 3: Allotment and issue of B Shares

Resolution 3 (which is conditional on Resolutions 1 and 2 being passed) is proposed as an ordinary resolution and authorises the Directors to allot and issue B Shares from time to time up to an aggregate nominal amount of €300,000,000 on a pro rata basis to Shareholders by way of one or more bonus issues. If approved, this authority to allot and issue B Shares will. expire at 23.59 hours on 8 January 2031.

The figure of 30,000,000,000 B Shares with a nominal value of one cent each, for which authorisation is being sought for allotment and issue, will allow for potential Return(s) of Capital using the new special distributable reserve and for associated ratio calculations.

A copy of the New Articles and the Articles marked to show the changes will be available during normal business hours (Saturdays, Sundays and public holidays excepted) at the Company’s registered office from the date of this document up to and including close of business on 8 January 2026 and at the venue of the General Meeting for at least 15 minutes prior to the start of the meeting and up until the close of the meeting. A copy of the New Articles will also be available for review on the Company’s website at (https://www.aquila-european-renewables.com) and submitted to the National Storage Mechanism which is available for inspection at https://data.fca.org.uk/a/nsm/nationalstoragemechanism.

Action to be taken

It is important to the Company that Shareholders have the opportunity to vote even if they are unable to attend the General Meeting. Whether or not you propose to attend the General Meeting in person, you are requested to complete the Form of Proxy and submit it to the Registrar at Computershare Investor Services PLC, The Pavilions, Bridgwater Road, Bristol BS99 6ZY, United Kingdom so that it arrives no later than 1:00 p.m. on 6 January 2026.

If you hold your Ordinary Shares in CREST, you may appoint a proxy or proxies by completing and transmitting a CREST Proxy Instruction using the procedures described in the CREST Manual as soon as possible and so that the instruction is received by no later than 1:00 p.m. on 6 January 2026.

As an alternative to completing and returning the accompanying Form of Proxy, you may submit your proxy electronically by accessing the Registrar’s online voting portal at www.investorcentre.co.uk/eproxy. For security purposes, you will be asked to enter the control number, your shareholder reference number (SRN) and personal identification number (PIN) to validate the submission of your proxy online. The control number and members’ individual SRN and PIN numbers are shown on the accompanying Form of Proxy. Proxies sent electronically must be sent as soon as possible and, in any event, so as to be received no later than 1:00 p.m. on 6 January 2026. In addition, institutional investors may be able to appoint a proxy electronically via the Proxymity platform (www.proxymity.io). Proxies submitted via a designated voting platform (such as CREST or Proxymity) for the General Meeting must be transmitted so as to be received by the Registrar no later than 48 hours (excluding weekends and any bank holiday) before the time of the General Meeting.

The completion and submission of a Form of Proxy or the transmission of a CREST Proxy Instruction will not affect your right to attend and vote in person at the General Meeting if you wish.

Shareholders are reminded that, if their Ordinary Shares are held in the name of a nominee, only that nominee or its duly appointed proxy can be counted in the quorum at the General Meeting.

If you are in any doubt about the contents of this document or what action you should take, you should consult your stockbroker, bank manager, solicitor or other appropriate independent financial adviser who is authorised under the FSMA if you are resident in the United Kingdom, or who is duly authorised under the European Communities (Markets in Financial Instruments) Regulation 2017 (as amended) or Investment Intermediaries Act 1995 (as amended) if you are resident in Ireland, or another appropriately authorised independent financial adviser if you are resident in a territory outside Ireland or the United Kingdom.

Costs of the managed wind down and the B shares

Fees charged to date in respect of the managed wind down are £2.61 million, which include:

legal fees of £1.79 million (covering managed wind-down and business as usual matters);
financial adviser fees of £250,000;
data room fees of £280,000;
power price curve £142,000; and
consultancy fees of £141,000.

Additional fees to completion of the managed wind-down process are estimated to be in the region of £3.76 million to £5.51 million, which include:

legal fees in the region of £500,000 to £1.25 million (accounting for a range of outcomes); and
financial adviser fees of at least £3.25 million up to £4.25 million.

The costs of the Returns of Capital under the B Share Scheme include a broker commission of 0.5 per cent of all amounts distributed, which, assuming an amount equal to the Company’s NAV as at 30 September 2025 is returned, equates to £972,000.

Therefore, total costs of the managed wind-down and the B Share Scheme are expected to be in the region of £7.2 million to £9.0 million, or 3.7 per cent to 4.6 per cent of total distributions. If total distributions are lower, then, as many of the costs are fixed, the costs as a proportion of the amounts returned will increase.

All amounts above assume an exchange rate of €1.14 to £1.

RECOMMENDATION

The Board considers the passing of the Resolutions to be proposed at the General Meeting, as set out in the Notice of General Meeting, to be in the best interests of Shareholders as a whole. Accordingly, the Board unanimously recommends that Shareholders vote in favour of the resolutions to be proposed at the General Meeting, as the Directors intend to do in respect of their own beneficial holdings, amounting to 225,000 Ordinary Shares, representing 0.06 per cent of the Ordinary Shares in issue (excluding the Company’s treasury shares amounting to 30,103,575) as at the date of this document.

In addition, Achilles Investment Company Limited, a company in which the Chair is the lead fund manager, intends to vote in favour of the resolutions in respect of their holdings, amounting to 5,110,000 Ordinary Shares in the Company, representing 1.35 per cent of the Ordinary Shares in issue (excluding the Company’s treasury shares amounting to 30,103,575).

Yours faithfully

Robert Naylor

Chair

1. DETAILS OF THE B SHARE SCHEME
2. 1. CONDITIONS TO THE IMPLEMENTATION OF THE B SHARE SCHEME

The adoption and implementation of the B Share Scheme is conditional upon Shareholder approval of the Resolutions at the General Meeting. The Notice of General Meeting is set out at the end of this document and a summary explanation of the Resolutions to be proposed at the General Meeting is set out in paragraph 8 below. The action to be taken by Shareholders is also set out on pages 9-10 of this document.

If the Resolutions are not passed by the requisite majorities of Shareholders, then the Company will be unable to return surplus cash from time to time to Shareholders by way of the B Share Scheme, although cash may still be returned in other ways.

- - 1. RETURN OF CAPITAL TO SHAREHOLDERS

A Return of Capital will involve the allotment and issue of B Shares to Shareholders and the redemption of the B Shares by the Company. The quantum and the timing of any Return(s) of Capital will be at the sole discretion of the Board. Details of any Return of Capital, including the relevant Record Date, Redemption Price and Redemption Date, will be announced through a Regulatory Information Service.

The adoption of a B Share Scheme will not limit the ability of the Company to return cash to Shareholders using other mechanisms and, if the B Share Scheme is adopted, the Board will continue to review its tax effectiveness and cost efficiency over time.

The Proposal to adopt a B Share Scheme at this point in time should not be taken as any indication as to the frequency or quantum of any future returns of cash to Shareholders.

- - 1. ALLOTMENT AND ISSUE OF AND RIGHTS ATTACHING TO THE B SHARES

For the purposes of making an issue of B Shares, it is proposed that the Directors be authorised to capitalise from time-to-time amounts standing to the credit of the Company’s reserves available for the purpose of making a bonus issue of shares in accordance with the Act and article 154 of the Articles. These aggregate capitalised amounts will be used from time to time to pay up, in full, B Shares with a nominal value of one cent each on the basis that the aggregate nominal value of the B Shares so issued on each such occasion will not exceed the aggregate sum or sums capitalised on each such occasion for the purposes of such B Share issue. The aggregate maximum number of B Shares that may be issued by the Company over time under the B Share Scheme will not exceed 30,000,000,000 and the aggregate nominal value of all B Shares issued will not exceed €300,000,000.

Under the New Articles and subject to the passing of Resolution 2, the Directors may capitalise any sum standing to the credit of any reserve of the Company (including, in particular, the Company’s new special distributable reserve) for the purposes of paying up, allotting and issuing B Shares to Shareholders.

The B Shares will be allotted and issued to Shareholders pro rata to their holdings of Ordinary Shares at the relevant Record Date for the issue of the B Shares. The Company will not allot or issue any fractions of B Shares and entitlements of each Shareholder will be rounded down to the nearest whole B Share.

The B Shares will have only very limited rights. The rights and restrictions to be attached to the B Shares are more fully set out in Part 3 of this document.

No share certificates will be issued for any B Shares allotted and no CREST accounts will be credited with any such shares.

No application will be made to (i) the Financial Conduct Authority or to the London Stock Exchange for any of the B Shares to be admitted to the Official List or to trading on the London Stock Exchange’s main market for listed securities or (ii) Euronext Group for any of the B Shares to be admitted to trading on Euronext Growth, nor will any of the B Shares be listed or admitted to trading on any other securities or investment exchange.

- - 1. REDEMPTION OF B SHARES

Each redemption of B Shares will be undertaken at the sole discretion of the Company. It is expected that redemption will occur shortly after each date of allotment and issue of B Shares, when all of the B Shares then in issue will be compulsorily redeemed and cancelled in accordance with their terms for an amount not exceeding the amount treated as paid up on the B Shares.

Following the redemption and cancellation of the B Shares, the redemption proceeds will be sent to Shareholders either through CREST to uncertificated Shareholders or via cheque or electronic payment to certificated Shareholders. As the B Share Dividend payment (if any) will be an income payment, it will be paid separately either to mandated bank accounts or by cheque. The cash received by Shareholders in connection with the B Share Scheme (to the extent that the B Shares are issued as paid up out of amounts standing to the credit of the Special Reserve), other than the very small B Share Dividend (if any), should, under current legislation, be taxed as capital for UK individual Shareholders. Please see Part 5 of this document for a summary guide to certain potential tax consequences in the UK.

The UK tax treatment mentioned above refers only to B Shares to the extent that they are issued as paid up out of amounts standing to the credit of the Special Reserve. Any issue (and subsequent redemption) of B Shares issued as paid up otherwise than out of amounts standing to the credit of the Special Reserve may be subject to different tax treatment and, in particular, the issue and redemption may give rise to an income distribution in the hands of Shareholders for UK tax purposes.

- - 1. OVERSEAS SHAREHOLDERS

Shareholders who are not resident in the United Kingdom or Ireland or who are citizens, residents or nationals of other countries should consult their professional advisers to ascertain whether the B Share Scheme (including, as may be relevant in each case, the issue, holding or redemption of the B Shares (which will be non-transferable)) will be subject to any restrictions or require compliance with any formalities imposed by the laws or regulations of, or any body or authority located in, the jurisdiction in which they are resident or to which they are subject. In particular, it is the responsibility of any Overseas Shareholder to satisfy themselves as to full observance of the laws of each relevant jurisdiction in connection with the B Share Scheme, including the obtaining of any government, exchange control or other consents that may be required or the compliance with other necessary formalities needing to be observed and the payment of any issue, transfer or other taxes or duties in such jurisdiction.

The distribution of this document in certain jurisdictions other than the United Kingdom or Ireland may be restricted by law. Persons into whose possession this document comes should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. Neither this document nor any other document issued or to be issued by or on behalf of the Company in connection with the B Share Scheme constitutes an invitation, offer or other action on the part of the Company in any jurisdiction in which such invitation, offer or other action is unlawful.

The provisions of this paragraph 5 relating to Overseas Shareholders may be waived, varied or modified as regards specific Overseas Shareholders or on a general basis by the Company in its absolute discretion.

- - 1. SECURITIES LAWS CONSIDERATIONS IN THE UNITED STATES

None of the B Shares will be registered under the US Securities Act or with any state or other jurisdiction of the United States, and none of the B Shares may be reoffered, resold, pledged, or otherwise transferred in or into the United States or to any US persons except pursuant to a transaction that has been registered under the US Securities Act and with the relevant state and other jurisdictions or a transaction that is exempt from, or otherwise not subject to, the securities laws of such jurisdictions.

- - 1. AMENDMENTS TO THE ARTICLES OF ASSOCIATION

Amendments to the Articles are required in order to implement the B Share Scheme and require approval at the General Meeting. Therefore it is proposed that the Articles be amended by the adoption of the New Articles (pursuant to Resolution 1) which include an insertion that contains the rights and restrictions attaching to the B Shares, as set out in Part 3 of this document together with a mechanism to allow the Directors to capitalise any sum or sums standing to the credit of the Company’s reserves from time to time for the purposes of the B Share Scheme with the authority of an ordinary resolution of Shareholders to be obtained on a one-off basis (being Resolution 2).

- - 1. SUMMARY EXPLANATION OF THE RESOLUTIONS

Resolution 1 will be proposed at the General Meeting as a special resolution, the passing of which requires at least 75 per cent. of the votes cast (whether in person or by proxy) to be in favour.

Resolution 2 and Resolution 3 will each be proposed as ordinary resolutions, the passing of which requires more than 50 per cent. of the votes cast (whether in person or by proxy) to be in favour.

A summary of the Resolutions follows below:

Resolution 1 approves the adoption of New Articles with immediate effect following the passing of that Resolution, which incorporate the rights and restrictions to be attached to the B Shares (as set out in Part 3 of this document).

Resolution 2 (which is conditional upon the passing of Resolution 1) authorises the Directors to capitalise from time-to-time a sum or sums standing to the credit of the Company’s reserves available for the purpose of making a new bonus issue of shares in accordance with the Act and the New Articles, and to apply such sum or sums from time to time in paying up in full up to 30,000,000,000 unlisted redeemable fixed rate preference shares of one cent each in the capital of the Company carrying the rights and restrictions set out in article 167 of the New Articles which may be allotted from time to time pursuant to the authority given by Resolution 3.

Resolution 3 (which is conditional upon the passing of Resolutions 1 and 2) authorises the Directors to allot and issue B Shares from time to time on a pro rata basis as determined by the Directors from time to time up to an aggregate nominal amount of €300,000,000. This authority to allot will expire at 23.59 hours on 8 January 2031.

1. RIGHTS AND RESTRICTIONS ATTACHED TO B SHARES

Set out below is the proposed insertion to the Articles, which contains the rights and restrictions attached to the B Shares. The following Article 167 is to be inserted into the New Articles together with the new defined terms as set out herein. The Company is seeking Shareholder approval to adopt the New Articles by way of a special resolution pursuant to Resolution 1.

B Ordinary Shares

Rights and restrictions attaching to B Shares.

General

167.1 Subject to the Companies Act and notwithstanding anything in these Articles to the contrary:

167.1.1 the Directors may issue B Shares provided that such B Shares are fully paid up out of the reserves of the Company; and

167.1.2 the Directors may, with the authority of an ordinary resolution of the Company (which need only be obtained once and need not be obtained on every occasion B Shares are to be issued unless the nominal value and/or the rights attached to the B Shares were to be different in respect of further issues of B Shares), from time to time resolve to capitalise any sum or sums standing to the credit of any reserve of the Company, whether or not the same is available for distribution, (including the special reserve of the Company) and apply such sum or sums for the purposes of paying up in full B Shares to be allotted and issued to shareholders pro rata to their holdings of Ordinary Shares (excluding any Ordinary Shares held in treasury at the relevant time or date) at such record time(s) and date(s) as shall be determined by the Directors in respect of such allotments and issues of B Shares, such pro rata basis to be determined by the Directors. No fractions of B Shares will be issued and entitlements will be rounded down to the nearest whole B Share. Where any difficulty arises with regard to the capitalisation of any such sum or sums the Directors may settle the matter as they think expedient and in particular may resolve that the issue of B Shares should be as nearly as may be practicable pro rata but not exactly so and may determine that cash payments shall be made to any members in order to adjust the rights of all parties as may seem expedient to the Directors, and may authorise any person to sell and transfer any fractions of B Shares.

167.2 Notwithstanding any other provisions in these Articles, the B Shares shall have the rights, and be subject to the restrictions, attaching to shares set out in these Articles save that in the event of a conflict between any provision in this Article 167 and any other provision in these Articles, the provisions in this Article 167 shall prevail.

Income

167.3 The Company’s profits available for distribution shall be applied first in paying to the holders of the B Shares (in priority to any payment of dividend to the holders of any other class of shares in the capital of the Company) a fixed rate cumulative preferential cash dividend ("Preferential Dividend") at the rate of 0.01 per cent. per annum on the nominal value of one cent on every B Share held by them, such dividend to be paid annually on the date falling six months after the date on which any B Shares are issued and thereafter on each anniversary of such date ("Fixed Dividend Dates") to the registered holders of B Shares shown in the Register on the relevant Fixed Dividend Date. Every Preferential Dividend shall be distributed to the holders of the B Shares pro rata according to the amounts paid up or credited as paid up on the B Shares held by them respectively and shall be rounded to the nearest whole cent.

Capital

167.4 Except as provided in Article 167.12 below, on a return of capital on a winding-up (excluding any intra-group reorganisation on a solvent basis), the holders of the B Shares shall be entitled, in priority to any payment to the holders of every other class of share in the capital of the Company, to one cent per B Share held by them.

167.5 On a winding up, the holders of the B Shares shall not be entitled to any further right of participation in the profits or assets of the Company in excess of that specified in Article 167.4 above. In the event that there is a winding-up to which Article 167.4 applies and the amounts available for payment are insufficient to pay the amounts due on all the B Shares in full, the holders of the B Shares shall be entitled to their pro rata proportion of the amounts to which they would otherwise be entitled.

167.6 The aggregate entitlement of each holder of B Shares on a winding-up in respect of all the B Shares held by him shall be rounded down to the nearest whole cent.

167.7 The holders of the B Shares shall not be entitled to any further right of participation in the profits or assets of the Company in their capacity as holders of B Shares.

Attendance and voting at general meetings

167.8 The holders of the B Shares shall not be entitled, in their capacity as holders of such B Shares, to receive notice of any general meeting of the Company nor to attend, speak or vote at any such general meeting.

Class rights

167.9 The Company may from time to time create, allot and issue further shares, whether ranking pari passu with or in priority or subsequent to the B Shares. The creation, allotment or issue of any such further shares (whether or not ranking in any respect in priority to the B Shares) shall be treated as being in accordance with the rights attaching to the B Shares and shall not involve a variation of such rights for any purpose or require the consent of the holders of the B Shares.

167.10 A reduction by the Company of the capital paid up or credited as paid up on the B Shares and the cancellation of such shares shall be treated as being in accordance with the rights attaching to the B Shares and shall not involve a variation of such rights for any purpose or require the consent of the holders of the B Shares.

167.11 Without prejudice to the generality of the foregoing, the Company is authorised to reduce (or purchase shares in) its capital of any class or classes and such redemption (or purchase) shall not involve a variation of any rights attaching to the B Shares for any purpose or require the consent of the holders of the B Shares.

Redemption of B Shares

167.12 Subject to the provisions of the Companies Act and these Articles, the Company shall redeem the B Shares as follows:

167.12.1 The B Shares shall be redeemed at such time or times as the Directors may in their absolute discretion determine (each a "Redemption Time"). There shall be paid on each B Share redeemed under this Article 167.12 the amount paid up thereon together with a sum equal to all arrears of any Preferential Dividend due and payable at any time prior to the Redemption Time.

167.12.2 As from the Redemption Time, no Preferential Dividends shall be payable on the B Shares.

167.12.3 In the absence of bad faith or wilful default, neither the Company nor any of its Directors, officers or employees shall have any liability to any person for any loss or damage arising as a result of the determination of the Redemption Time in accordance with Article 167.12.1 above.

167.12.4 The receipt of the registered holder for the time being of any B Shares (or in the case of joint registered holders the receipt of any of them) of the monies payable on the redemption thereof shall constitute an absolute discharge to the Company in respect thereof.

Transfer

167.13 The B Shares shall not be transferable.

Share certificates

167.14 The B Shares shall not be listed or admitted to trading on any stock exchange nor shall any share certificates be issued in respect of the B Shares.

Definitions

167.15 For the purposes of this Article 167, the following terms have the meanings given below:

B Shares unlisted, redeemable, fixed rate preference shares of one cent each in the capital of the Company

Fixed Dividend Dates has the meaning given to it in Article 167.3;

Preferential Dividend has the meaning given to it in Article 167.3; and

Redemption Time has the meaning given to it in Article 167.12.1.

1. RISKS ASSOCIATED WITH THE PROPOSAL

In considering how to vote on the Resolutions in relation to the Proposal, you are referred to the risks set out below.

Shareholders should read this document carefully and in its entirety and, if you are in any doubt about the contents of this document or the action you should take, you are recommended to immediately seek your own personal financial advice from your stockbroker, bank manager, solicitor, accountant or other independent financial adviser authorised under the Financial Services and Markets Act 2000 or who is duly authorised under the European Communities (Markets in Financial Instruments) Regulation 2017 (as amended) or Investment Intermediaries Act 1995 (as amended) if you are resident in Ireland, or another appropriately authorised independent financial adviser if you are resident in a territory outside Ireland or the United Kingdom

Risks related to the B Share Scheme and any Return(s) of Capital

Shareholders should be aware of the following risks associated with the B Share Scheme and any Return(s) of Capital.

There is no guarantee that the B Share Scheme or any Return of Capital pursuant to the B Share Scheme will take place. The B Share Scheme is conditional on, among other things, the approval of Shareholders and will not proceed if the Resolutions are not passed. The approval of Resolution 1 requires not less than 75 per cent. of those voting at the General Meeting in person or by proxy to vote in favour of the Resolution. Resolutions 2 and 3 require more than 50 per cent. of those voting at the General Meeting in person or by proxy to vote in favour. It is possible that Shareholders may not approve the Resolutions. If the Resolutions are not passed there will be no Return(s) of Capital under the B Share Scheme and the Board will need to consider alternative options to return capital to Shareholders which will involve additional time and cost.
The amount of cash that the Company will be able to return to Shareholders in the future and the timing of any such returns will depend, amongst other things, on the performance of the Company’s remaining assets and the proceeds realised following a disposal of such assets and the timing of such realisations. The quantum and timing of any Return(s) of Capital to Shareholders under the B Share Scheme (if any) will also be at the discretion of the Board and will also be dependent on completion of disposals of the remaining assets, general working capital requirements and the amount and nature (from a tax perspective) of the Company’s distributable reserves from time to time.
Even if the Resolutions are passed, the Board may determine, at its absolute discretion, not to make any Return of Capital pursuant to the B Share Scheme.
The Board has been advised that based on the facts, the B Share Scheme should result in UK individual taxpayers receiving their cash proceeds on redemption of B Shares as capital in the way described in this document(to the extent that the B Shares are issued as paid up out of amounts standing to the credit of the Special Reserve). However, there is no guarantee that this position will be accepted and not challenged by HMRC and should Shareholders who are UK individual tax payers fail to receive the capital treatment described in this document they will be subject to income tax on the cash proceeds on the redemption of the B Shares at the rates set out in the "Taxation of Dividends" section in Part 5 of this document.

Risks related to the managed wind-down of the Company

The Company’s business, financial condition or results could be materially and adversely affected by any of the risks described below. In such cases, the market price of the Ordinary Shares may decline because of any of these risks and Shareholders may lose all or part of their investment. Additional risks and uncertainties not presently known to the Directors, or that the Directors currently deem immaterial, may also have an adverse effect on the Company. The Directors consider the following to be the material known risks specific to the Company, but the risks listed do not necessarily comprise all those associated with the Company: In a managed wind down, the value of the Company’s portfolio will be reduced as investments are realised and concentrated in fewer holdings.
The Company might experience increased volatility in its Net Asset Value and/or its share price as a result of the wind down of its portfolio.
The Company’s assets may not be realised at their carrying value, and it is possible that the Company may not be able to realise some of its assets in a timely manner.
An orderly wind-down is reliant on a willingness to transact from potential buyers, confirmation that they have funding sources available and the completion of due diligence/relevant legal documentation.
Pursuing the managed wind-down including (i) finding potential buyers, (ii) negotiating the terms of sale of an asset with potential buyers and (iii) returning capital to Shareholders requires significant time commitment from the Company and its advisers and generates significant transaction costs to be borne by the Company.
As the assets of the Company are sold, the Company’s portfolio will become less diversified and the Company will be more exposed to concentration risk.
As is customary, any terms of sale of the Company’s assets may contain various obligations from the seller in favour of the purchaser. The Company shall take appropriate steps to minimise the risk of liability under these provisions. However, any liability to make a payment arising from a successful claim by the purchaser under these provisions could have an adverse effect on its business, financial condition and results of operations. Furthermore, the Company may need to withhold some of the proceeds from the sale during the relevant claim period to provision for any potential claim being made by a relevant purchaser.
As cash is progressively returned to Shareholders, the net assets of the Company will progressively reduce. The Company’s annual running costs and liabilities will not necessarily reduce by the same proportion and consequently the costs as a percentage of net assets may increase. This may restrict, in terms of both quantum and timing, the Company’s ability to make dividend payments and/or return capital to Shareholders following receipt of the net proceeds of realisations of investments.
Although the Ordinary Shares are admitted to trading on the London Stock Exchange’s main market for listed securities and admitted to trading on Euronext Growth, it may prove difficult for Shareholders to sell their Ordinary Shares in the market. In addition, there is no guarantee that the market price of the Ordinary Shares will reflect their underlying Net Asset Value or the ability to buy and sell at that price.
UNITED KINGDOM TAXATION

United Kingdom taxation

The following summary does not constitute tax advice and is intended only as a general guide to current UK law and HMRC published practice (which are both subject to change at any time, possibly with retrospective effect, and the latter of which is not necessarily enforceable). It relates only to certain limited aspects of the UK taxation treatment of Shareholders and is intended to apply only to Shareholders who are solely resident in the UK (other than Scotland) for UK tax purposes and who are, and will be, the absolute beneficial owners of their Ordinary Shares and B Shares and who hold, and will hold, them as investments (and not as securities to be realised in the course of a trade) other than on a tax exempt basis (e.g. through an Investment Savings Account (ISA)). The summary may not apply to certain Shareholders, such as, but not limited to, dealers in securities, insurance companies, collective investment schemes, Shareholders who are exempt from taxation, Shareholders who have or are deemed to have acquired their Ordinary Shares or B Shares by reason of their or another’s employment, Shareholders who hold their Ordinary Shares or B Shares as part of hedging or conversion transactions, or Shareholders who hold their Ordinary Shares or B Shares in connection with a UK branch, agency or permanent establishment. The position may be different for future transactions and may alter between the date of this document and the implementation of the B Share Scheme.

Shareholders who are in any doubt as to their tax position or who are subject to tax in Scotland or a jurisdiction other than the UK should consult an appropriate professional adviser.

Issue of B Shares

For the purposes of the taxation of chargeable gains, the issue of B Shares (to the extent that they are issued as paid up out of amounts standing to the credit of the Special Reserve) should constitute a reorganisation of the share capital of the Company. Accordingly, the B Shares should be treated as the same asset as a Shareholder’s holding of existing Ordinary Shares, and as having been acquired at the same time as a Shareholder’s holding of existing Ordinary Shares was acquired. A Shareholder’s combined holding of Ordinary Shares and B Shares should have the same aggregate base cost as the Shareholder’s holding of Ordinary Shares immediately before the issue of B Shares. The aggregate base cost should be apportioned between B Shares and the Ordinary Shares held by a Shareholder by reference to the market values of the Ordinary Shares and the B Shares on the first day of trading after the issue of B Shares. Due to the terms on which the B Shares will be issued, and as they are nontransferable, their market value is likely to be equal to their nominal value of one cent. The apportionment ratio between B Shares and Ordinary Shares in relation to each B Share issue will be published on the Company’s website (https://www.aquila-european-renewables.com) at the earliest practicable time following a quotation or publication of a price or market valuation in respect of the Ordinary Shares following an issue of B Shares.

The issue of B Shares (to the extent that they are issued as paid up out of amounts standing to the credit of the Special Reserve) should not give rise to any liability to UK income tax or corporation tax in a Shareholder’s hands.

The UK tax treatment described above refers only to B Shares to the extent that they are issued as paid up out of the Special Reserve. Any issue (and subsequent redemption) of B Shares issued as paid up otherwise than out of the Special Reserve may be subject to different tax treatment and, in particular, the issue and redemption may give rise to an income distribution in the hands of Shareholders for UK tax purposes.

Redemption of the B Shares

On the redemption of all or any of the B Shares (to the extent that they have been issued as paid up out of amounts standing to the credit of the Special Reserve), an individual Shareholder may, depending on their individual circumstances, be subject to capital gains tax on the amount of any chargeable gain realised. Any gain will be measured by reference to the excess of the redemption price above a Shareholder’s tax base cost for the B Shares redeemed. A Shareholder’s allowable expenditure in relation to their existing Ordinary Shares should be apportioned between the Ordinary Shares and the B Shares in the manner described above.

The amount of capital gains tax, if any, payable by an individual Shareholder in relation to the chargeable gain will depend on their personal tax position. As at the date of this document, no tax should be payable on any gain realised on the redemption if the amount of the net chargeable gain, when aggregated with other net chargeable gains realised by the individual Shareholder in the year of assessment in question and allowable losses, does not exceed the annual exemption for UK CGT purposes (£3,000 for the tax year ended 5 April 2026). Broadly, any gains in excess of this amount will be taxed at the individual’s relevant UK capital gains tax rate. The gain will be taxable at 18 per cent. if the individual is a UK resident and a basic rate income taxpayer only. If the gain exceeds the unused part of an individual’s basic rate band for income tax the gain will be taxed at 18 per cent. to the extent of the unused element and 24 per cent. for the excess.

If a UK tax resident individual is subject to income tax at a rate in excess of the basic rate then the chargeable gain will be taxable at 24 per cent.

As B Shares issued under the B Share Scheme will not be listed or admitted to trading on a securities or investment exchange, they will not be eligible for inclusion in an ISA.

Redemptions will be recognised for CGT purposes in the tax year in which they occur.

Redemption payments made to Shareholders within the charge to UK corporation tax will be treated as distributions for tax purposes and should generally not give rise to any charge to corporation tax.

The Finance Act 2015 enacted legislation which, broadly, treats amounts paid on the redemption of shares as income in the hands of an individual Shareholder, rather than a capital gain, where a company gives the shareholder a choice of whether to receive either a distribution or an “alternative receipt” of broadly the same value but which is not charged to income tax. The Company is of the view that this legislation does not apply to the redemption of the B Shares on the basis that it does not provide Shareholders with a choice as to the form of any amounts they are entitled to receive. Accordingly, the proceeds received by a Shareholder on a redemption of B Shares for an amount equal to their nominal value should not be prevented by virtue of this legislation from being a return of capital in the Shareholder’s hands.

Taxation of Dividends

The Company is not required to withhold tax at source from dividend payments that it makes.

Individual Shareholders

Shareholders who are individuals and who receive a dividend from the Company will, in principle, be liable to UK income tax on the amount of that dividend, depending on the amount of dividend income received in total by (and other taxable income of) that Shareholder (whether from the Company or other sources) in the relevant tax year.

Individual Shareholders will not currently be liable to UK income tax in respect of a dividend from the Company if the Shareholder’s total dividend income from any source in the relevant tax year does not exceed £500. In the case of an individual Shareholder who receives dividends in excess of £500 in a tax year, the excess amount of any such dividends will be subject to UK tax at 8.75 per cent. for basic rate and non-taxpayers, 33.75 per cent. for higher rate taxpayers and 39.35 per cent. for additional rate taxpayers. In practice, given the very short period of time for which the B Shares will be in issue, B Share Dividends are unlikely to become payable.

Corporate Shareholders

A Shareholder within the charge to UK corporation tax which is a 'small company' (for the purposes of the UK taxation of dividends) will not generally be subject to tax on dividends from the Company.

Other Shareholders within the charge to UK corporation tax will not be subject to tax on dividends from the Company so long as the dividends fall within an exempt class and do not fall within certain specified anti-avoidance provisions and the Shareholder has not elected for the dividends not to be exempt. It is expected that any dividends paid by the Company on the B Shares would fall within an exempt class.

Stamp Duty and Stamp Duty Reserve Tax ("SDRT")

No stamp duty or SDRT will be payable by Shareholders on the allotment and issue of any B Shares or the redemption of any B Shares (since redemptions will take place under the New Articles of Association and not under Section 690 Companies Act 2006).

Transactions in Securities

Under the provisions of Part 15 of the Corporation Tax Act 2010, HMRC can in certain circumstances counteract tax advantages arising in relation to a transaction or transactions in securities. If these provisions were to be applied by HMRC to the proposed B Share Scheme, in broad terms, individual Shareholders might be liable to taxation as if they had received an income amount rather than a capital amount. However, these provisions only apply in the case of close company transactions. The Directors do not consider that the Company is a close company, and consequently these provisions should not be relevant.

NOTICE OF GENERAL MEETING

(Incorporated in England and Wales with registered number 11932433)

(Registered as an investment company under section 833 of the Companies Act 2006)

Notice is hereby given that the General Meeting of Aquila European Renewables plc will be held at the offices of CMS Cameron McKenna Nabarro Olswang LLP, at Cannon Place, 78 Cannon Street, London, EC4N 6AF, United Kingdom on 8 January 2026 at 1.00 p.m. for the following purposes:

To consider and, if thought fit, pass the following resolutions of which resolution 1 will be proposed as a special resolution and resolutions 2 and 3 will each be proposed as ordinary resolutions.

Special Resolution

- 1. That the draft articles of association produced to the meeting and initialled by the chairman of the meeting be approved and adopted as the articles of association of the Company in substitution for, and to the exclusion of, all existing articles of association of the Company to take effect immediately.

Ordinary Resolutions

- 1. That, conditional upon the passing of resolution 1 above, the directors of the Company be generally and unconditionally authorised pursuant to article 154 of the articles of association of the Company to capitalise from time to time any sum or sums standing to the credit of any reserve of the Company, whether or not the same is available for distribution, (including the Company’s special reserve) and to apply such sum or sums in paying up in full up to 30,000,000,000 unlisted, redeemable, fixed rate preference Ordinary Shares of one cent each in the capital of the Company having the rights and restrictions set out in article 154 of the articles of association of the Company ("B Shares") that may be allotted and issued from time to time to the holders of Ordinary Shares in the capital of the Company pursuant to the authority given by resolution 3 below.
- That, conditional upon the passing of resolutions 1 and 2 above, pursuant to section 551 of the Companies Act 2006, the directors of the Company ("Directors") be generally and unconditionally authorised to exercise all powers of the Company to allot and issue from time to time, credited as fully paid up B Shares up to an aggregate nominal amount of €300,000,000 to the holders of Ordinary Shares in the capital of the Company (excluding any Ordinary Shares held in treasury) on a pro rata basis, and by reference to such record time(s) and date(s), as determined by the Directors from time to time, in accordance with the terms of the circular sent by the Company to its shareholders dated 15 December 2025. Unless previously varied, revoked or renewed, this authority shall expire at 23.59 hours on 8 January 2031, save that the Company may, before such expiry, make an offer or agreement which would or might require B Shares to be allotted and/or issued after such expiry and the Directors may allot and issue B Shares in pursuance of any such offer or agreement as if the authority conferred hereby had not expired.


By order of the Board
Grace Goudar for Apex Listed Companies Services (UK) Limited Company Secretary 15 December 2025		Registered Office 4th Floor 140 Aldersgate Street London EC1A 4HY United Kingdom

Notes to the Notice of the General Meeting

- 1. Holders of Ordinary Shares are entitled to attend, speak and vote at the General Meeting. A Shareholder entitled to attend, speak and vote at the General Meeting may appoint one or more persons as his/her proxy to attend, speak and vote on his/her behalf at the General Meeting. A proxy need not be a Shareholder of the Company. However, in order for their vote to count, Shareholders are strongly encouraged to appoint the Chair of the meeting as their proxy. Shareholders are advised to return the form of proxy irrespective of whether they are expecting to attend the General Meeting. If multiple proxies are appointed, they must not be appointed in respect of the same Ordinary Shares. To be effective, the enclosed form of proxy (“Form of Proxy”), together with any power of attorney or other authority under which it is signed or a certified copy thereof, should be lodged at the office of the Company’s Registrar, Computershare Investor Services PLC, The Pavilions, Bridgwater Road, Bristol, BS99 6ZY, United Kingdom by no later than 1.00 p.m. on 6 January 2026.
- If you return more than one proxy appointment, either by paper or electronic communication, in respect of the same Ordinary Shares, the Form of Proxy validly received last by the Registrar before the latest time for the receipt of proxies will take precedence. You are advised to read the terms and conditions of use carefully. Electronic communication facilities are open to all Shareholders and those who use them will not be disadvantaged.
- As an alternative to completing the Form of Proxy, Shareholders can appoint a proxy electronically via the Registrar’s online voting portal at www.investorcentre.co.uk/eproxy. For an electronic proxy appointment to be valid, your appointment must be received by the Registrar no later than 1.00 p.m. on 6 January 2026. Shareholders are strongly encouraged to appoint the Chair of the General Meeting as their proxy to vote on their behalf.
- If you are an institutional investor you may be able to appoint a proxy electronically via the Proxymity platform, a process which has been agreed by the Company and approved by the Registrar. For further information regarding Proxymity, please go to www.proxymity.io. Your proxy must be lodged by 1.00 p.m. on 6 January 2026 in order to be considered valid. Before you can appoint a proxy via this process you will need to have agreed to Proxymity’s associated terms and conditions. It is important that you read these carefully as you will be bound by them and they will govern the electronic appointment of your proxy.
- The appointment of a proxy will not prevent a Shareholder from attending the General Meeting, speaking and voting in person if he/she so wishes. The termination of the authority of a person to act as proxy must be notified to the Company in writing by no later than 1.00 p.m. on 6 January 2026. Amended instructions must be received by the Registrar by the deadline for receipt of proxies. Where you have appointed a proxy using the Form of Proxy and would like to change the instructions using another hard-copy Form of Proxy, please contact the Registrar’s helpline on 0370 703 0020 (or +44 370 703 0020 from outside the UK). Lines are open 8.30 a.m. to 5.30 p.m. Monday to Friday (excluding public holidays in England and Wales).
- Voting on all of the proposed resolutions at the General Meeting will be conducted on a poll rather than on a show of hands in accordance with the Company’s articles of association.
- To appoint more than one proxy, Shareholders will need to complete a separate Form of Proxy in relation to each appointment, stating clearly on each Form of Proxy the number of Ordinary Shares in relation to which the proxy is appointed. A failure to specify the number of Ordinary Shares to which each proxy appointment relates or specifying an aggregate number of Ordinary Shares in excess of those held by the Shareholder will result in the proxy appointment being invalid. Please indicate if the proxy instruction is one of multiple instructions being given. If you require additional Forms of Proxy, please contact the Registrar’s helpline on 0370 703 0020 (or +44 370 703 0020 from outside the UK). Lines are open 8.30 a.m. to 5.30 p.m. Monday to Friday (excluding public holidays in England and Wales). All Forms of Proxy must be signed and should be returned together in the same envelope if possible.
- In the case of joint holders, where more than one of the joint holders purports to appoint a proxy, only the appointment submitted by the most senior holder will be accepted. Seniority is determined by the order in which the names of the joint holders appear in the Company’s register of members in respect of the joint holders (the first named being the most senior).
- Only those Shareholders registered in the register of members of the Company as at 6.30 p.m. on 6 January 2026 (the “specified time”) shall be entitled to vote at the General Meeting in respect of the number of Ordinary Shares registered in their name at that time. Changes to entries on the relevant register of securities after 6.30 p.m. on 6 January 2026 shall be disregarded in determining the rights of any person to vote at the General Meeting. If the General Meeting is adjourned to a time not more than 48 hours after the specified time applicable to the original meeting, that time will also apply for the purpose of determining the entitlement of Shareholders to vote (and for the purpose of determining the number of votes they may cast) at the adjourned meeting. If however the General Meeting is adjourned for a longer period then, to be so entitled, Shareholders must be entered on the Company’s register of members at the time which is 48 hours before the time fixed for the adjourned meeting, or if the Company gives notice of the adjourned meeting, at the time specified in that notice.
- Shareholders who hold their Shares electronically may submit their votes through CREST. Instructions on how to vote through CREST can be found by accessing the following website: www.euroclear.com.
- CREST members who wish to appoint a proxy or proxies by utilising the CREST electronic proxy appointment service may do so for the General Meeting and any adjournment(s) thereof by following the procedures described in the CREST manual (available via www.euroclear.com). CREST personal members or other CREST sponsored members, and those CREST members who have appointed a voting service provider(s), should refer to their CREST sponsor or voting service provider(s), who will be able to take the appropriate action on their behalf.
- In order for a proxy appointment or instruction made by means of CREST to be valid, the appropriate CREST message (a “CREST Proxy Instruction”) must be properly authenticated in accordance with Euroclear’s specifications and must contain the information required for such instructions, as described in the CREST manual (available via www.euroclear.com). The message, in order to be valid, must be transmitted so as to be received by them the Company’s agent ID, 3RA50 by the latest time for receipt of proxy appointments specified in note 1 above. For this purpose, the time of receipt will be taken to be the time (as determined by the timestamp applied to the message by the CREST Applications Host) from which the Company’s agent is able to retrieve the message by enquiry to CREST in the manner prescribed by CREST. After this time, any change of instructions to proxies appointed through CREST should be communicated to the appointee through other means.
- CREST members and, where applicable, their CREST sponsors or voting service providers should note that Euroclear does not make available special procedures in CREST for any particular messages. Normal system timings and limitations will therefore apply in relation to the input of CREST Proxy Instructions. It is the responsibility of the CREST member concerned to take (or, if the CREST member is a CREST personal member or sponsored member or has appointed a voting service provider(s), to procure that his/her CREST sponsor or voting service provider(s) take(s)) such action as shall be necessary to ensure that a message is transmitted by means of the CREST system by any particular time.
- In this connection, CREST members and, where applicable, their CREST sponsors or voting service providers are referred, in particular, to those sections of the CREST manual concerning practical limitations of the CREST system and timings.
- The Company may treat as invalid a CREST Proxy Instruction in the circumstances set out in Regulation 35(5) (a) of the Uncertificated Securities Regulations 2001.
- A person to whom this Notice of General Meeting is sent who is a person nominated under section 146 of the Companies Act 2006 to enjoy information rights (a “Nominated Person”) may, under an agreement between him/her and the Shareholder by whom he/ she was nominated, have a right to be appointed (or to have someone else appointed) as a proxy for the General Meeting. If a Nominated Person has no such proxy appointment right or does not wish to exercise it, he/she may, under any such agreement, have a right to give instructions to the Shareholder as to the exercise of voting rights. The statements of the rights of members in relation to the appointment of proxies in note 1 above do not apply to a Nominated Person. The rights described in those notes can only be exercised by registered Shareholders of the Company.
- Nominated Persons are reminded that their main point of contact in terms of their investment in the Company remains the member who nominated the Nominated Person to enjoy information rights (or, as applicable, the custodian or broker who administers the investment on their behalf). Nominated Persons should continue to contact that member, custodian or broker (and not the Company) regarding any changes or queries relating to the Nominated Person’s personal details and interest in the Company (including any administrative matter). The only exception to this is where the Company expressly requests a response from a Nominated Person.
- As at 12 December 2025 (being the latest practicable date prior to the date of this Notice of General Meeting), the Company’s issued share capital amounted to 408,225,705 Ordinary Shares carrying one vote each. 30,103,575 Ordinary Shares were held in treasury. Therefore, the total voting rights of the Company as at the date of this Notice of General Meeting were 378,122,130.
- Any corporation which is a Shareholder may appoint one or more corporate representatives who may exercise on its behalf all of its powers as a Shareholder, provided that they do not do so in relation to the same Ordinary Shares. However, before deciding to elect to appoint a corporate representative, corporate Shareholders may also appoint one or more proxies in accordance with note 1.
- Any question relevant to the business of the General Meeting may be asked at the meeting by anyone permitted to speak at the meeting or can be submitted in advance by email to [email protected] by 1.00 p.m. on 6 January 2026. The Company must answer any questions asked by a Shareholder relating to the business being dealt with at the meeting unless:
  1. answering the question would interfere unduly with the preparation for the meeting or involve the disclosure of confidential information;
  2. the answer has already been given on a website in the form of an answer to a question; or
  3. it is undesirable in the interests of the Company or the good order of the meeting that the question be answered.
- Any person holding 3% or more of the total voting rights of the Company who appoints a person other than the Chair of the meeting as his/her proxy is to ensure that both he/she and his/her proxy comply with their respective disclosure obligations under the Disclosure Guidance and Transparency Rules. Shareholders are directed to the guidance on voting by proxy set out in these Notes.
- This Notice of General Meeting, the information required by section 311A of the Companies Act 2006 and, if applicable, any members’ statements, members’ resolutions or members’ matters of business received by the Company after the date of this Notice of General Meeting, will be available on the Company’s website at https://www.aquila-european-renewables.com.
- Shareholders may not use any electronic address provided either in the Notice of General Meeting or any related documents (including the Form of Proxy) to communicate with the Company for any purpose other than those expressly stated.
DEFINITIONS

In this document, unless context otherwise requires, the following expressions bear the following meanings:


Act	the Companies Act 2006, as amended from time to time;
Aquila Capital	Aquila Capital Investmentgesellschaft mbH;
Articles or Articles of Association	the current articles of association of the Company, as adopted by a special resolution of the Company passed on 29 April 2019;
Board	the board of Directors of the Company (or any duly authorised committee thereof);
B Share Dividend	the fixed rate dividend payable on B Shares in accordance with the rights described in Part 3 of this document;
B Shares	unlisted, redeemable, fixed rate preference shares of one cent each in the capital of the Company having the rights and restrictions set out in Part 3 of this document;
B Share Scheme	the proposed mechanism to enable returns of capital through the issue and redemption of B Shares;
CGT	United Kingdom taxation of capital gains and corporation tax on chargeable gains;
Company	Aquila European Renewables plc;
CREST	the relevant system (as defined in the Uncertificated Securities Regulations 2001 (SI 2001 No. 3755)) for the paperless settlement of transfers and the holding of shares in uncertificated form which is administered by Euroclear;
CREST Manual	the compendium of documents titled 'CREST Manual' issued by Euroclear from time to time and comprising the CREST Reference Manual, the CREST Central Counterparty Service Manual, the CREST International Manual, CREST Rules, CCSS Operations Manual and the CREST Glossary of Terms;
CREST Proxy Instruction	an authenticated CREST message to appoint or instruct a proxy in accordance with Euroclear’s specifications and the CREST Manual;
Directors	the directors of the Company from time to time;
Disclosure Guidance and Transparency Rules	the UK disclosure guidance and transparency rules sourcebook made by the FCA under Part VI of FSMA;
Euroclear	Euroclear UK & International Limited;
FCA or Financial Conduct Authority	the Financial Conduct Authority;
Form of Proxy	the form of proxy for use by Shareholders in connection with the General Meeting which accompanies this document;
FSMA	the Financial Services and Markets Act 2000, as amended, including any regulations made pursuant thereto;
General Meeting	the general meeting of the Company convened for 1.00 p.m. on 8 January 2026 to be held at Cannon Place, 78 Cannon Street, London, EC4N 6AF, or any adjournment of that meeting, the notice for which is set out at the end of this document ("Notice of General Meeting");
HMRC	HM Revenue & Customs;
London Stock Exchange	London Stock Exchange plc;
Net Asset Value	the value of the assets of the Company less its liabilities, determined in accordance with the accounting principles adopted by the Company from time to time;
New Articles	the new articles of association of the Company proposed to be adopted by Shareholders at the General Meeting pursuant to Resolution 1;
Official List	the Official List of the FCA;
Ordinary Shares	ordinary shares of €0.01 each in the capital of the Company;
Overseas Shareholders	Shareholders resident in, or citizens or nationals of, jurisdictions outside the United Kingdom;
Proposal	the proposed adoption and implementation of the B Share Scheme by the Company on the terms set out in this document;
Record Date	in respect of any Return of Capital, the date determined by the Board, at its absolute discretion, on which Shareholders’ entitlements to B Shares under that Return of Capital will be calculated;
Redemption Date	in respect of any Return of Capital, the date determined by the Board, at its absolute discretion, on which the B Shares allotted and issued under that Return of Capital will be redeemed;
Redemption Price	in respect of any Return of Capital, the price at which B Shares allotted and issued under that Return of Capital are to be redeemed, being one cent for each B Share;
Registrar	Computershare Investor Services plc;
Regulatory Information Service	the regulatory information service provided by the London Stock Exchange;
Resolution 1	resolution number 1 to be put to the General Meeting as set out in the Notice of General Meeting;
Resolution 2	resolution number 2 to be put to the General Meeting as set out in the Notice of General Meeting;
Resolution 3	resolution number 3 to be put to the General Meeting as set out in the Notice of General Meeting;
Resolutions	Resolution 1, Resolution 2 and Resolution 3, or each of them as the context may require;
Return of Capital	a return of capital pursuant to the allotment, issue and redemption of B Shares to be made at such time or times as determined by the Board at its absolute discretion;
Shareholders	holders of Ordinary Shares;
UK or United Kingdom	the United Kingdom of Great Britain and Northern Ireland;
US or United States	the United States of America, its territories and possessions, any state of the United States of America and the District of Columbia; and
US Securities Act	the United States Securities Act of 1933, as amended from time to time.

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