Hendrik - The engine looks like a UD9 power unit - same as used in WD9 and TD9 tractors.
The distributor does indeed look odd for this engine. Perhaps an aftermarket replacement for an original magneto?
If the engine starts/runs, $1,250 seems be a fair price even if the alternator does not work. Worst case is you can sell the alternator for scrap and get a portion of your $1,250 back.
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