Renewable Energy Generation gets bid from management for trading subsidiaries

The Board of Renewable Energy Generation Limited announces that it has received a non-binding approach for its trading subsidiaries. The assets would be acquired by a new company formed by the company’s executive management team.

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 Renewable Energy Generation 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 (£10.5m at 30 September 2015, made up of debt of £26m, £2.7m of restricted cash and £12.8m of unrestricted cash).

Because of the conflict of interest, the non-executive directors are considering the offer in consultation with their advisers.

They say 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 Renewable Energy Generation’s admission to trading on AIM, to place the Company into members’ voluntary liquidation and thereafter to return available cash to shareholders.

The Offer will result in a delay to the publication of REG’s annual results, from the previously announced date of 2 November 2015. A further update will be provided in due course.

WIND : Renewable Energy Generation gets bid from management for trading subsidiaries