Leading UK wind power group rejects takeover bid

Guildford, Surry, UK — ESI-AFRICA.COM — 28 January 2011 – Wind farm developer Renewable Energy Generation (REG) “’ a leading, UK-orientated wind power and bio power group “’ has rejected a £70-million (US$111.5 million) offer approach from an unnamed UK-listed firm, saying that the bid significantly undervalued the company.

REG, which also generates power from used cooking oil, said the indicative approach received earlier this month had comprised a mix of cash and shares, and had valued the company at 67.7 pence a share, a 54% premium to its Thursday close.

The company confirmed that discussions with the potential suitor had ended, with the latter stating that it would not make another offer for the company. As a result, REG said it was no longer in an offer period.

The AIM-listed company’s shares, which have shed about 30% over the last one year, were up 17.1% at 51.5 pence on the London Stock Exchange this morning.