19th Feb 2015 12:49
LONDON (Alliance News) - Renewable Energy Generation Ltd Thursday said it has sold its 10 megawatt Denzell Downs wind farm project to BlackRock Renewable Income UK, a fund managed by BlackRock, for an enterprise value of GBP24.4 million.
Enterprise value is a measure of a company's value that takes into account a company's market capitalisation, debt, minority interest and preferred shares, minus total cash and cash equivalents, according to investopedia.com.
Under the agreement, Renewable Energy Generation will oversee construction of the project through a construction management agreement and operate the completed wind farm on behalf of BlackRock through an asset management agreement.
Renewable Energy Generation said it will receive GBP10.5 million upfront, with a further GBP3.9 million payable following commissioning of the scheme, anticipated to be in early 2016. It will recognise an initial GBP11 million of profit on the sale.
The proceeds of the sale will be reinvested in Renewable Energy Generation's pipeline of consented renewable assets, the company said.
Construction funding will be provided by BlackRock.
The company said its next tranche of projects Rodbaston (4MW), French Farm (4MW), Brackagh Quarry (6MW) and Barlborough (0.8MW) is currently undergoing project finance and will move to construction later this year.
In addition, two further Bio-Power projects will be constructed during Renewable Energy Generation's next financial year.
Renewable Energy Generation shares were up 2.0% at 63.00 pence on Thursday.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
WIND.L