Clipper Windpower has agreed a 65p per share cash bid from its main shareholder, UTC. The bid values the wind turbine manufacturer at £140 million.
UTC, which owns Pratt & Whitney and Sikorsky, already holds 49.9% of Clipper, having invested £127 million at the beginning of this year in order to obtain that stake. Although the majority was invested at a subscription price of 150p a share, around 10% of the company cost 180p a share; this was acquired from existing shareholders.
UTC, which argues that it can give Clipper the financial stability needed to enable it to grow over the long term, will also be able to contribute its expertise in blades, turbines and gearbox design. UTC already has a portfolio of energy efficient products and power generation systems. The acquisition should be completed in December.
Clipper has had problems with its technology, but believes that it is starting to show some improvements. The strategic partnership with UTC which was established at the beginning of the year has helped.
Delayed orders and deposits have hampered Clipper’s cash flow. In the three months to September 2010, Clipper’s cash fell from $140 million to $85 million and it is continuing to decline. This cash outflow was a major reason behind the decision that Clipper would be better off with a financially strong partner, such as UTC.
Clipper joined AIM on 14 September 2005, when it raised £60.6 million after expenses at 190p a share.
12 month high/low: 176.5p/31.25p
Market cap: £138m
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