Renewable Energy Generated (REG) announced it plans to sell the Canadian wind energy developer AIM PowerGen to International Power, an electricity company, for a cash consideration of USD 110 million.

London based International Power will fund the purchase from its own resources, with the acquisition expected to be completed by the end of 2009. The market's response on this announcement was favorable, causing a gain on REG's shares of almost 33%.

According to REG, the company is selling the wind power developer in order to refocus efforts on building a substantial portfolio of UK onshore wind assets. After repaying a loan debt to the Bank of Scotland (GBP 17 million), the company will have about USD 80 million to use for developing its onshore wind business portfolio.

The AIM PowerGen sale also releases some 15 MW of wind farm capacity still waiting financing. The company is one of Canada's largest wind farm developers, with a total of 40 MW of installed capacity, with a further 40 MW awaiting project financing and construction.