REG Sells AIM PowerGen to International Power in London

Renewable Energy Generation, based in the UK, agreed over the last week to sell Canadian-based wind farm development company, AIM PowerGen, to the electricity company International Power. The financials for the deal will take the form of a cash consideration for $110 million.

The sale is being taken positively by industry players and markets, and the sale has sent REG’s shareholdings up to 57.50 pence, which is a trade up of 32.95%. International Power, based in London, has stated that they will fund the purchase from an existing account. 

The entire purchase and acquisition is expected to be completed by the end of this year, although shareholder approval is still pending on the deal. The AIM PowerGen sale is going to allow REG to refocus their aims on onshore wind assets in the UK, said REG CEO Andrew Whalley.

AIM is one of the largest wind farm developers in Canada, operating four wind farms for a total capacity of 40MW. The company also as an additional 40 MW of planned projects which are awaiting financing and permits. As of December 31 last year, the company was valued at GBP 54 million for their entire assets. 

Currently Renewable Energy Generation has 300 MW of wind power which is operational, in the works, or at the pre-planning stage. REG is running all onshore wind projects through its subsidiary, Cornwell Light & Power.