First published by Quoted Cleantech - October 2010

Clipper Windpower has agreed a 65p a share cash bid from its main shareholder UTC. The bid values the wind turbine manufacturer at £139.5m.

UTC, which owns Pratt & Whitney and Sikorsky, already owns 49.9% of Clipper. UTC invested £126.5m at the beginning of this year in order to obtain that stake. The majority was invested at a subscription price of 150p a share but around 10% of the company cost 180p a share - it was acquired from existing shareholders.

UTC argues that it can give the company the financial stability it needs to enable it to grow over the long-term. UTC 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 it believes that it is starting to show some improvements. The strategic partnership with UTC that was set up 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.