Wednesday, April 09, 2008

JP Morgan to pump $150m into Clipper

LONDON (SHARECAST) - The private equity arm of JPMorgan Chase has agreed to invest $150m in AIM quoted wind turbine specialist Clipper Windpower.

The money from One Equity Partners will help with the manufacturing, delivery and commissioning of Clipper's 2.5 megawatt (MW) Liberty Turbine into the US wind energy market.

“The investment fortifies Clipper's balance sheet, allows the company to strengthen its core wind turbine business and provides additional working capital to support growth,” said the group.

One Equity will subscribe for around 15.8m shares at the lower of 480p per share and the volume weighted average trading price of the shares over the five business days preceding 4 May.

This will bag Clipper £76m and give One Equity a 12.3% stake in the business. It will also nominate two representatives to Clipper's board.

Completion of the deal is subject to US anti-trust approval and the approval by shareholders at a general meeting on 6 May.

No comments: