Renewable Energy Generation Ltd. 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. 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.
REG, based in St Helier, Jersey, will use some of the proceeds from today’s sale to build 21 megawatts of wind power in Cornwall, southwest England, according to the statement.