United Technologies Corporation is investing £126.5m in Clipper Windpower and aims to increase its holding to 49.5%.
UTC has agreed to subscribe for 84,337,124 shares at £1.50 apiece - approximately 39.3% of Clipper's enlarged issued share capital.
And UTC confirmed it intends to launch a partial cash offer to purchase up to 21,804,559 Clipper shares from existing shareholders at £1.80p apiece to increase its holding to 49.5%.
If UTC receives tenders for fewer shares than the target number, certain shareholders have entered into a call option with UTC to sell sufficient shares to ensure it obtains ownership of 49.5%.
Clipper says the subscription will significantly strengthen its balance sheet and enable it to enhance its operations and pursue its strategic initiatives.
Story provided by Business Financial Newswire