The board of Renewable Energy Generation is considering an offer from an undisclosed party to acquire its assets, which could lead to the company’s delisting from the UK AIM market, and placed into voluntary liquidation.
The offer, which is subject to due diligence, would generate an estimated net cash distribution of around 60pence 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,” REG said in a regulatory filing.
“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.
REG’s 111 megawatts of operational UK projects include those in the wind, bio-power and solar sectors.