Renewable Energy Generation Posts Loss; To Sell Entire Business; Stock Up

(RTTNews) - Shares of Renewable Energy Generation Ltd. (WIND.L) were gaining around 8 percent in the morning trading in London after the company announced Wednesday the recommended disposal of its entire business for cash in a transaction with a fund managed by BlackRock (BLK) that values the Company's equity before exit costs, at 64.5 million pounds. Separately, the company reported a loss in its fiscal 2015, compared to last year's profit.

Regarding the business sale, the company noted that following completion of the Sale and Delisting, it is proposed that Liquidators be appointed pursuant to oversee a liquidation process during which the majority of the net cash proceeds of the sale will be returned to Shareholders.

The target initial, and likely final, liquidation distribution is expected to be approximately 60.0 pence per Ordinary Share. On conclusion of the liquidation a maximum final distribution of up to a further 0.3 pence per Ordinary Share will be made.

The company said the initial liquidation payment represents a premium of 61.1 percent to the closing stock price on October 8, the day immediately prior to the announcement by the Company of receipt of the initial non-binding offer.

For the full year ended June 30, the company reported a loss before tax of 4.36 million pounds, compared to profit of 2.86 million pounds a year ago. Loss per share was 5.08 pence, compared to profit of 3.66 pence last year.

Revenues for the year were 12.0 million pounds, higher than 11.6 million pounds last year.

Profits on the sale of subsidiaries, representing the sale of 3 wind farms totalled 15.4 million pounds, higher than 9.5 million pounds a year ago.

The Company has separately announced today the recommended disposal of the entire business of the Company for cash in a transaction with a fund managed by BlackRock. This announcement relates to the Company's financial results for the year ended 30 June 2015.

In London, Renewable Energy Generation shares were trading at 58.83 pence, up 8.43 percent.