Blackrock swoops for REG assets

AIM-listed Renewable Energy Generation has agreed a £64.5m sale of its entire operating and consented wind and solar assets to a fund managed by US investment outfit Blackrock.

RI Income Holdings Limited, a company controlled by Blackrock Renewable Income Fund, will pay around 60p per share for the Jersey-headquartered company.

An EGM will take place on 18 December and, if granted shareholder approval, REG will delist from the AIM stock exchange on 5 January. Upon delisting, REG will be liquidated.

REG has 34.7MW of operating wind plant, 0.8MW of projects under construction and 42MW of consented projects awaiting funding to construction. The company also owns the constructed 2.64MWp Mendennick ground-mounted solar PV scheme in Cornwall.

REG’s “rump” assets, which are not in the procurement and construction phase, will be transferred to Helium Miracle 184 Limited, a new company owned by Manco EBT, established by directors and senior management.

Manco will enter into construction management agreements with Blackrock to complete the construction of the consented assets. Manco will also enter into asset management agreements and asset investment agreements with Blackrock.

Blackrock will also have a “first look” option to acquire assets to be developed by Manco.

REG had intended to raise funding to develop its consented projects through a £31m share issue, but that was canned in July.

The company said changes to government policy, including closure of the Renewables Obligation to onshore wind and ground-mounted solar, continued reductions to the wind feed-in tariff, and elimination of onshore wind from Contracts for Difference, had necessitated the sale.

“Any one of these factors alone would have a significant impact on the Group but, taken together, the impact is profound,” the company said in a statement.

REG entered into a strategic partnership with Blackrock for the sale of operational wind assets in 2013.

Image: St Breock wind farm in Cornwall (REG)