Australia-based solar farms investor and operator New Energy Solar Ltd (ASX:NEW) today announced plans to sell its portfolio of 167 MW of solar assets at home and focus on its US business.
The company said in a bourse filing it will offload its 111-MW Beryl and 55.9-MW Manildra solar farms, the capacity of which is given in direct current (DC). The sale will represent New Energy Solar’s exit from the Australian solar energy market.
The decision was taken following a strategic review initiated in September with the aim of achieving the “optimal capital structure” for the company and improving securityholder value. The assessment was launched following an extended period during which the price of New Energy Solar’s securities kept falling and the discount to its net asset value widened.
The Aussie firm expects to open bidding for the assets early in 2021 and complete the sale in the middle of the year.
According to the statement, both domestic and international investors have shown interest in the Aussie assets, which will be sold through competitive bidding. The developer plans to use the funds from the potential sale and other already completed deals for capital management initiatives that may include security buybacks, capital returns and debt reduction.
New Energy Solar’s US portfolio comprises 606 MW DC of capacity spread across 14 projects, most of which with off-take deals in place.
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