Shares surge as REG turns down takeover

• 13 years ago (2011-01-28)
• Junior Isles

Europe 1061 Renewables 751

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UK power project developer Renewable Energy Generation Ltd. has seen its stock jump 28 per cent after it announced it had 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 in a filing. Its shares traded at 56 pence, up 27 per cent, at 8:51 am Jan 28th.

After consulting with several large shareholders, the board rejected the proposal because it “very significantly undervalued the company”. Through its wind unit, REG operates nine wind farms in the UK totalling 37.15 MW 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 UK renewable energy projects during the next two years while “continuing to realise the latent value in its 560 MW development pipeline,” according to the statement.