Wind turbine maker Clipper Windpower has agreed a £139.5m buyout by United Technologies Corporation in a deal which will buoy its finances ahead of a choppy outlook for the US wind energy sector.
UTC will gain control of the 50.1 per cent stake in Clipper it does not already own and will provide an additional loan facility to assist with cash flow ahead of the transaction.
Connecticut-based UTC will pay 65p-a-share, a 48 per cent premium on Clipper’s pre-bid closing price.
“For Clipper right now this buyout by UTC is phenomenal. It gives it a significant cash injection to fight against some of its peers in this tough environment,” said Libertas Capital analyst Titus Menzies.
Shares in Clipper jumped 30 per cent to 64p by mid-morning yesterday, making them one of the biggest gainers on the Aim market.
Falling gas prices in the US and government austerity measures are likely to weigh on demand for wind energy in the US over the coming years, analysts said.
But Mark Chaichian, Clipper’s business development director, said he was confident the deal would make good sense for UTC in the long term.
“The outlook for the sector if you believe the markets is going to be a little rough in the short term,” said Chaichian.
City A.M. Reporter