WIND.L Regulatory News (WIND)

1 Aug 2006 07:01

Renewable Energy Generation Ltd01 August 2006 August 1st, 2006 - Large Strategic Acquisition - Renewable Energy Generation Limited ("REG") Acquisition of AIM PowerGen Corporation ("AIM") Renewable Energy Generation Limited ("REG") the AIM listed investor in renewableenergy generation projects announces the purchase of AIM PowerGen Corporation("AIM"), a leading Canadian wind Developer, for $29.1M Cdn. AIM is a private Canadian windfarm developer, founded in 2001 and based inToronto, Ontario. The Company has over 2,600 MW of Canadian wind projects invarious stages of development in the provinces of Ontario, Manitoba,Saskatchewan, Alberta, Newfoundland, Labrador and Prince Edward Island. Under the terms of the agreement REG will acquire all of the outstanding sharesof AIM for $23.00 Cdn. per share or a total consideration of $29.1M Cdn. Certainof the AIM shareholders have agreed to subscribe 32% (in aggregate) of the cashconsideration for new shares in REG at a formula price described below. Themanagement team of AIM together with AIM's largest shareholders, have agreed totake 60% of their consideration in cash and the remainder in new REG shares. Background to Canada Canada has 1,049 MW of installed wind capacity in operation today. According tothe Canadian Wind Energy Association ("CanWEA"), this is expected to grow toover 9,000 MW by 2015. REG regards Canada as a strategic market for thecontinued growth and diversification of its portfolio of wind farms. AIM hasrecently developed the biggest wind project yet built in Ontario and one of thelargest in Canada to date. Mike Crawley, president and CEO of AIM said: "We are absolutely delighted to be teamed with REG. They bring experience andaccess to capital markets which is critical to take advantage of theopportunities in the fast growing Canadian wind energy market place." "We have assembled an outstanding portfolio of assets over the last five yearsand we are delighted to be able to work with the REG team to develop theseprojects. AIM can now also offer partnering opportunities to the many wind powerdevelopers who are looking for a strategic partner of their own. The windindustry in Canada is on the verge of significant growth and we believe that AIMand REG can be at the leading edge of this." REG Chairman Mike Liston states: "AIM is one of the largest and most successful wind developers in Canada and weare thrilled that they have accepted REG's offer to work with the existing teamin developing our international business. The strong regulatory framework inCanada including high quality counter-parties for power contracts is attractiveto us. The experienced development team at AIM has built a very strong platformfor growth, and we expect to be at the forefront of Canada's exploitation of itshuge wind resources." AIM will continue to operate under its current name in Canada and Mike Crawleywill continue as president and CEO. Financial terms and disclosures REG has agreed to buy the whole of the outstanding equity of AIM for aconsideration of $29.1M Cdn. to be paid 100% in cash from REG's existingresources but with 32% of that cash to be immediately reinvested in new REGshares. The shares will be issued at the average price at which they traded overthe 60 days prior to the completion of this transaction. The transaction is expected to close August 3rd, 2006. ends For further information please contact: REG Power Management: Andrew Whalley - 07717 508562 AIM PowerGen Corporation: Mike Crawley - 416 502 0993 ext. 224 This information is provided by RNS The company news service from the London Stock Exchange