28th Jan 2011 07:00
Press Release 28 January 2011
Renewable Energy Generation Ltd
("REG", "the Company" or "the Group")
Rejection of approach
Renewable Energy Generation (AIM: WIND), the UK renewable energy developer and operator, today announces that the Company received an indicative approach in January to acquire the Group, which has been rejected by the Board of the Company. The indicative proposal from a UK listed entity comprised a mix of shares and cash consideration and valued the Company at approximately 67.7pence per REG share. Having consulted with certain large shareholders, the Board rejected the proposal on the basis that it very significantly undervalued the Company. The Board of REG confirms that discussions with the potential offeror have now ended and the potential offeror has confirmed that it is no longer contemplating making or participating in an offer for the Company.
The Board remains confident that its strategy of investing £100m into new UK renewable energy projects over the next two years whilst continuing to realise the latent value in its 560MW development pipeline is the best way to enhance shareholder value.
As the potential offeror has confirmed that it is no longer contemplating making or participating in an offer for the Company, for the purposes of the City Code on Takeovers and Mergers, the Company is not deemed to be in an offer period.
ENDS
Enquiries:
Renewable Energy Generation Limited Andrew Whalley, Chief Executive Officer David Crockford, Finance Director Ian Lawrence , Communications Manager
| +44 (0)1483 901 790 |
Smith & Williamson Corporate Finance Limited (Nominated Adviser) Nick Reeve / Martyn Fraser
| +44 (0)117 376 2213 |
Evolution Securities (Corporate Broker) Garry Levin / Tim Redfern / Stuart Andrews
| +44 (0)20 7071 4300 |
MHP Communications Katie Hunt / Vicky Watkins
| +44 (0)20 3128 8100 |
Lexicon Partners (Financial Adviser) Read Gomm | +44(0)20 7653 6000 |
Notes to Editors
Renewable Energy Generation Ltd (REG) is a UK orientated renewable energy group. The Group's main business is the development, construction and operation of wind farms in the UK and generating power from refined used cooking oil in the UK.
·; REG Windpower: based in Cornwall and Bath, UK, it currently operates nine wind projects in Cambridgeshire, Cornwall, County Durham, Yorkshire, Cumbria and Gwynedd, with a total capacity of 37.15MW and has a development pipeline of around 560MW.
·; REG Bio-Power UK Ltd: based in Nottingham, UK: it operates electricity generation plant fuelled by waste vegetable oil.
Headquartered in Jersey, REG was admitted to trading on AIM, a market operated by the London Stock Exchange, in May 2005 (AIM: WIND).
www.renewableenergygeneration.co.uk
Related Shares:
WIND.L