Renewable Energy Generation Blame Government "dismantling" Of Green Incentives For Sale
Renewable Energy Generation Limited has announced that it is selling out the entire business for cash in a transaction with a fund managed by BlackRock that values the Company at £64.5 million.
The company say the government "dismantling" of green incentives has been a body blow to the group and lead to a reassessment of its position in the industry.
"On 18 June 2015, the newly elected UK Government announced the start of a process of dismantling green incentives. The proposed policy changes include the closure of the Renewables Obligation (RO) to onshore wind and ground-mounted solar projects, continued reductions to the small scale wind feed-in tariff (FIT), elimination of onshore wind from feed-in tariff contracts for difference (CFD FIT), stricter planning policies with respect to onshore wind farms and elimination of the climate change levy (CCL) exemption for renewable generators.
Any one of these factors alone would have a significant impact on the Group but, taken together, the impact is profound.
Since the General Election, the Board has been assessing the impact of these policy changes on the Group's future. During this process, the Board received a non-binding offer for its trading subsidiaries, representing the business, assets and undertakings of the Company. The Offer was announced by the Board on 9 October 2015 and today the Board announces the Company has accepted the Offer, subject only to Shareholder approval."
