Drax has been the subject of a number of approaches over recent weeks but has terminated talks with all but the BCHP consortium, which includes Constellation Energy, hedge fund Perry Capital, Blackstone Group and Hellman & Friedman.

Although terms of the bid have not been disclosed, the consortium in understood to have increased its original offer for the station to well over £2 billion following its initial offer of around £1.9 billion ($3.3 billion).

Drax is seeking to clarify the details of the offer before proceeding and, meanwhile, is planning to float on 15 December if the talks fall through.

The owners of the plant in Selby, Yorkshire, had rejected three previous bid approaches and has confirmed it is no longer negotiating with other consortia including Apollo, Texas Pacific Group and TowerBrook while International Power and Mitsui & Co decided not to go ahead with a joint bid.

“The consideration offered by the BCHP consortium to shareholders is 100% cash, with the opportunity for existing investors to elect to take up to 40% of the offeror’s equity,” Drax said in a statement.