United Technologies Corp., the maker of Pratt & Whitney jet engines, agreed to buy the rest of Clipper Windpower Plc after reduced orders left the British wind-turbine manufacturer struggling to finance operations, Reuters reports.
UTC, based in Hartford, will pay Clipper stockholders 65 pence a share, a 31 percent premium to their last closing price, Clipper said today in a statement. United Technologies, the maker of Otis elevators, owns 49.5 percent and the cash offer values all of London-based Clipper at 139.5 million pounds ($222 million).
The wind-turbine producer said in September that it was considering ways to raise money, including acquiring lines of credit from its biggest shareholder because of lower receipts of deposits and payments from customers for existing orders. Financing for wind farm development has been undermined by the global economic and credit crisis and Clipper’s customers have also reduced investment and delayed projects.
“In the context of the challenging environment that Clipper has faced in recent years, we believe that the transaction represents good value,” Chief Executive Officer Mauricio Quintana said in the statement today.
Clipper shares jumped 29 percent to 64 pence in London trading as of 8:06 a.m. The stock had declined 71 percent this year before the offer. The turbine maker estimated first-half losses will be $26 million to $30 million. Its consolidated cash position fell to $86 million at the end of August from $140 million at the end of June.
Goldman Sachs Group Inc. is advising Clipper.
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