Approach for Business Assets

Renewable Energy Generation Limited ("the Company" or "REG")

Approach for business and assets

The Board of Renewable Energy Generation Limited announces that it has received a non-binding approach ("the Offer") for its trading subsidiaries, representing the business, assets and undertakings of REG ("the Assets"). For the avoidance of doubt, the approach is not an offer to acquire the ordinary share capital of REG.

The Offer, which is subject to due diligence, would generate an estimated net cash distribution of around 60p per share representing a premium of 61% to the closing share price of a REG ordinary share on 8 October 2015. The Board view the potential buyer as a highly credible, fully funded, counterparty able to implement the Offer through a streamlined and timely acquisition process.

The Assets include the net debt of the Group, which at 30 September 2015 comprised £10.5 million being £26.0 million of debt, £2.7 million of restricted cash and £12.8 million of unrestricted cash.

The Offer envisages that at the closing of the transaction, certain subsidiaries within the Assets will be acquired by a new company formed by the executive management team of REG. Consequently as the Offer has the involvement of related parties, it is being considered by the non-executive directors of REG (the "Independent Directors") in consultation with their advisers.

Shareholders should be aware that, in the event the transaction proceeds, it would be the intention of the Independent Directors to also put forward proposals to cancel REG's admission to trading on AIM, to place the Company into members' voluntary liquidation and thereafter to return available cash to shareholders.

The transaction would constitute a fundamental change of business for REG, in accordance with Rule 15 of the AIM Rules, and would therefore be subject to the consent of REG shareholders in a General Meeting.

The Offer will result in a delay to the publication of REG's annual results, from the previously announced date of 2 November 2015.

This announcement does not relate to an acquisition of the Company's shares and as such does not commence an offer period under The City Code on Takeovers and Mergers (the "Code"). A business and assets sale is not governed by the Code.

A further update will be provided in due course.

For further information please visit www.renewableenergygeneration.co.uk or contact the following: