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Real-Time news about Renewable Eng. (London Stock Exchange): 0 recent articles
RNS Number : 7415B
Renewable Energy Generation Ltd
09 October 2015
Renewable Energy Generation Limited ("the Company" or "REG")
Approach for business and assets
The Board of Renewable Energy Generation Limited announces that it has received a non-binding approach ("the Offer") for its trading subsidiaries, representing the business, assets and undertakings of REG ("the Assets"). For the avoidance of doubt, the approach is not an offer to acquire the ordinary share capital of REG.
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 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.
The Assets include the net debt of the Group, which at 30 September 2015 comprised GBP10.5 million being GBP26.0 million of debt, GBP2.7 million of restricted cash and GBP12.8 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. Consequently as the Offer has the involvement of related parties, it is being considered by the non-executive directors of REG (the "Independent Directors") in consultation with their advisers.
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 REG's admission to trading on AIM, to place the Company into members' voluntary liquidation and thereafter to return available cash to shareholders.
The transaction would constitute a fundamental change of business for REG, in accordance with Rule 15 of the AIM Rules, and would therefore be subject to the consent of REG shareholders in a General Meeting.
The Offer will result in a delay to the publication of REG's annual results, from the previously announced date of 2 November 2015.
This announcement does not relate to an acquisition of the Company's shares and as such does not commence an offer period under The City Code on Takeovers and Mergers (the "Code"). A business and assets sale is not governed by the Code.
A further update will be provided in due course.
For further information please visit www.renewableenergygeneration.co.uk or contact the following:
Chief Executive Renewable Energy +44 (0)1483 901
Officer Generation Ltd 796
David Crockford Renewable Energy +44 (0)1483 901
Finance Director Generation Ltd 796
+44 (0)20 7397
Bobbie Hilliam Cenkos (Broker) 8900
Smith & Williamson
Adviser and Financial
Martyn Fraser, Adviser to the Independent +44 (0)117 376
Sara Thompson Directors) 2213
This information is provided by RNS
The company news service from the London Stock Exchange
|petersmith3: PPG – Plutus Powergen the easy next 10 bagger!!!!!
The chairman of PPG said that each 20MW site would generate about £1.6m - £1.7m in revenue. EBITDA given as £1.25m - £1.5m.
10 sites on that basis = £16-£17m revenue with EBITDA of £12.5 - £15m.
Therefore possibly £3m-£4m conservatively annual profits depending on the ultimate revenue split ?.
On a p/e of 15 that's £45-£60m m/cap or 8p - 10.5p/share.
Given that's it's growing, his further comments were - 'really smash the 3 year target for 10 sites' and they have already 1 year behind them.
If those targets are smashed and as they do have 500MW of sites in the pipeline - on the same p/e the share price could see 20 - 27p.
We do know that they plan to own some sites outright at 100% which again would improve the margins significantly.
Ultimately also what do they do with that profit and they could expand into other avenues - was there not talk of this in some other countries ?
Called it a compelling investment, fully funded and no further dilution to the shareholder base.
571.43m shares in issue and 49.5% held by management/Paternoster (Charles Tatnall himself having 9.71%).
Chelverton Growth Trust PLC was accumulating and just 7 weeks ago had increased to 33.33m shares or 5.83%.
Free float will reduce all the time and one thing to remember with no more placings it could become difficult to trade in/out and regain your holding.|
|hedgehog 100: Ronan,
A rise at and following a company's results is certainly better than a fall.
Price Price Change [%] Bid Offer Open High Low Volume
50.50 1.0 [2.02] 50.00 51.00 49.50 50.50 49.50 18,214
And Renewable Energy Generation is certainly doing a lot better than its near namesake Renewable Energy Holdings, which is down about 90% over the last three years to just 3.25p! REG's share price performance looks solid given that the renewable energy sector is currently out of favour with investors.
And the company's long-term progress looks reasonably sound given the difficult environment that the company speaks of:
WIND's Chief Executive's Statement:
"However, this growth has not been achieved easily. The truth is that developing, building and owning wind farms is an immensely complex business. The regulatory and political backdrop to the sector is not easy whilst developing large infrastructure projects in a responsible and safe manner is never less than challenging. Nonetheless I think we can look back on the last three years with some satisfaction."
"Gaining planning permission for onshore wind farms continues to prove difficult, with many schemes stalled in the planning system, and a high rate of refusal. The RenewableUK (formerly BWEA) figures show that there are approximately 7,000 MW worth of onshore schemes waiting for planning permission. On average a wind farm planning application takes 2 years to be considered by a local authority, with an approval rate of 40%. This compares extremely unfavourably with other types of major applications, such as housing, retail outlets and roads, 70% of which are decided within the 1316-week statutory deadline; for wind farms the rate is just 6%."
|hugepants: This mutt is yielding about 4.25%. Not bad while we wait for share price to zoom past key 67p level.|
|hugepants: Broker view: Evolution says Renewable Energy's assets not reflected in share price
...Evolution responded to yesterday's news that REG had raised £12 million of project finance against approximately 14 megawatts of wind farm developments by arguing that even the true value of the firm's existing assets are not reflected by its share price.
And the broker reckons that its current target price of 90 pence for REG's shares can be augmented as the firm submits planning applications for 140MW of new wind farms....|
|adam: I am out. Concerned that reasons for rejecting bid not commercial. Why did share price never go near 77p?|
|waldron: Vestas Wind Systems "neutral," target price raised
Tuesday, March 27, 2007 10:36:27 AM ET
J.P. Morgan Securities
LONDON, March 27 (newratings.com) - Analysts at JP Morgan maintain their "neutral" rating on Vestas Wind Systems (VWS.FSE), while raising their estimates for the company. The target price has been raised from DKK225 to DKK235.00.
In a research note published this morning, the analysts mention that the company has posted its full-year results in-line with the preannouncement. The analysts expect robust demand trends, an improvement in product pricing and possible consolidation in the industry to lend support to Vestas Wind Systems' share price going forward. The EPS estimates for 2007 and 2008 have been raised by 5%.
|ariane: Solarworld downgraded to "hold"
Monday, June 20, 2005 12:53:43 PM ET
LONDON, June 20 (newratings.com) - Analyst Alexander Karnick of Deutsche Bank downgrades Solarworld (SWV.ETR) from "buy" to "hold." The target price has been raised from 65.3 to 75.
In a research note published this morning, the analyst mentions that the company's share price has appreciated by approximately 60% since April and by 30% over the past five days. According to Deutsche Bank, the target price has been raised to reflect expanded sector multiples.
|ariane: Windfarm deal sparks Scottish & Southern
Published: 16:29 Fri 27 Aug 2004
By Graeme Davies, Companies Correspondent
Scottish & Southern Energy shares got a lift today after it announced the construction of a windfarm off Scotland.
Shares in the £6.25 billion utility company (SSE) added 9p to 735p after announcing a partnership with Talisman Energy Inc, a $12 billion Canadian energy company, to construct a £24 million windfarm adjacent to Talisman's Beatrice field 25 kilometres off Scotland's east coast.
The windfarm will be used as a demonstrator project to 'determine if large-scale developments of this type are a practical source of renewable energy'. It should begin producing energy in late 2006.
In total the project should cost SSE and Talisman £7 million each with the remainder coming from UK and European government grants.
It confirms SSE's position as one of the most progressive of the UK utility companies in seeking sustainable renewable energy sources. Chief executive Ian Marchant said: 'The key to realising the full potential of renewable energy over the long term is the development of new technologies. We are committed to building on our position as the UK's largest generator of electricity from renewable sources.'
SSE's share price has performed well this year rising from 637p to as high as 740p and today's news has attracted buyers in a quiet market.
The rising cost of buying power on the wholesale market has led companies such as SSE and rival Scottish Power to announce plans for higher bills this winter, despite two price rises in the past year. Natural gas, coal and oil are all trading at historically high levels.
With non-renewable resources likely to dwindle even more rapidly in the years to come as the developing world catches up with the developed world through rapid industrialisation renewable energy sources will become more and more important. Hence SSE is positioning itself well for the necessary growth in renewable energy. However this merely a demonstration development and it will be some time before its potential becomes clear.
Companies in the news
Company Mid Change Approximate price on day of publication Price Change From Publication
Scottish & Southern Energy PLC ( SSE ) 738.5 12.5 735.07 3.43
Renewable Eng. share price data is direct from the London Stock Exchange