Foresight Solar Fund Ltd (LSE:FSFL) made what it described as a 'formal proposal' for a competitor but ultimately chose not to proceed with it.
It said continues to assess strategic options in a depressed renewables market.
The London-listed investment trust, which focuses on solar and battery storage assets, said its board had considered “various opportunities” and reached the point of making an offer for the unnamed business.
Investors were told “the FSFL board was unable to ultimately advance” the plan and those discussions were terminated.
The move comes amid mounting pressure across the listed renewables sector, where share prices continue to lag behind the underlying value of assets.
Foresight Solar shares have been trading at a discount to net asset value despite strong operational performance and a £50mn share buyback nearing completion.
The company said it remains open to all options to maximise shareholder value, noting its belief that consolidation will be a major theme for the industry in the year ahead.
Chair Alex Ohlsson said: "As previously outlined, the board believes consolidation will be a major feature in the year ahead to create larger, more liquid vehicles that continue to provide investors with exposure to an appealing asset class.
"The directors are fully aware of the benefits that successful consolidation can deliver and have made a formal proposal that did not advance. We will continue to evaluate all options with the potential to maximise value for shareholders."
In its latest trading update, Foresight reported strong electricity production in the UK, which was 9.4% above budget through April thanks to favourable weather.
This helped offset weaker performance in Spain and Australia, where poor weather, grid outages and curtailments dragged generation below expectations. Overall, production for the global portfolio was 0.3% ahead of forecast, and 1.9% above when excluding network issues.
The fund has also increased the proportion of future revenues under contract, helping to support its target of covering dividends by 1.3 times this year.
Meanwhile, the sale of its Australian assets is progressing, though a deal is now more likely before year-end.