Monday, October 18, 2010

United Technologies To Buy Remaining 51.1% of Clipper Windpower For $112 Million

United Technologies (NYSE:UTX), a maker of jet engines and other industrial products based in the U.S., said today that it has agreed to buy in cash the remaining 51.1% of Clipper Windpower (LON: CWP) it does not own.

The deal, valued at about 70 million pounds (about US$112 million), or 65 pence per share, will give United Technologies full control of the London-based wind turbine manufacturer. The offer represents a 34% premium to Clipper’s closing price last Friday and values the entire company at 139.8 million pounds (about US$223.7 million).

Back in January, United Technologies acquired a 49.5% stake in Clipper as the wind-turbine manufacturer faced difficulties financing operations.

For the first half of 2010, Clipper recorded a loss of $26.7 million, or 13 cents per share, on revenues of about $154 million.

As of June 30, 2010, Clipper had current assets of $385 million, $140 million of which is in cash. Liabilities due within one year totalled $467 million.

The transaction is pending the approval of Clipper’s shareholders and subject to other customary closing conditions.

Since the announcement, Clipper’s shares have jumped almost 29% to close at 63.75 pence per share on the London markets. For the year to date, the company’s share price has plunged 63%.

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