Renewable Energy Generation Ltd. (WIND) rose to the highest in almost three years in London trading after agreeing on a 32.1 million-pound ($50.8 million) wind-farm sale to BlackRock Inc. (BLK) as part of a longer-term partnership.
REG jumped 18 percent to 62 pence as of 11:44 a.m. local time, the highest price since Feb. 24, 2010, after selling its 10-megawatt Sancton Hill and 6-megawatt South Sharpley wind projects to BlackRock. More than 188,500 shares have traded so far, more than double the three-month daily average.
REG will receive 16.2 million pounds in cash as well as a deferred payment of 650,000 pounds, and assume 15.3 million pounds in project debt, it said today in a statement. The accord allows BlackRock to buy future REG wind plants, including a 4- megawatt park this spring. REG, which will also get payments for managing the projects, said the tie-up allows it to fund growth.
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