Renewable Energy Generation Ltd. jumped as much as 28 percent in London after the U.K. power project developer said it turned down a takeover offer valuing the company at 67.7 pence a share.
The cash-and-share offer came from an unidentified company that trades in Britain, Jersey-based Renewable Energy Generation said today in a filing. Its shares traded at 56 pence, up 27 percent, at 8:51 a.m. local time.
After consulting with several large shareholders, the board rejected the proposal because it “very significantly undervalued” the company, it said. Through its wind unit, REG operates nine wind farms in the U.K. totaling 37.15 megawatts of capacity, the company said in December.
The board decided “the best way to enhance shareholder value” was to keep to its strategy of investing 100 million pounds ($159 million) into new U.K. renewable energy projects during the next two years while “continuing to realize the latent value in its 560-megawatt development pipeline,” according to the statement.