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New Energy Solar looks to divest stakes in 325 MW of US solar assets

Solar panels. Featured Image: pornvit_v/Shutterstock.com

November 21 (Renewables Now) - Australian investment company New Energy Solar Ltd (ASX:NEW) on Thursday announced plans to sell a 50% stake in the 200-MW Mount Signal 2 solar farm in California and a 49% interest in the 124.8-MW Boulder plant in Nevada.

The company has launched a sales process and expects binding bids by the middle of January 2020, it said.

The stakes in the two solar parks, the capacity of which is given in direct current (DC), have a combined equity value of about AUD 126 million  (USD 86m/EUR 77m) as of June 30, which represents 23% of the company's total net asset value.

The move to divest the equity stakes comes as New Energy Solar is looking for ways to strengthen the value of its portfolio. The company explained that the price at which its shares trade on the Australian Stock Exchange does not reflect its net asset value.

Proceeds from the equity sales will be used for capital management initiatives, including a share buyback and repayment of some shorter-term debt.

(AUD 1.0 = USD 0.68 /EUR 0.61)

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Before joining Renewables Now, Alex was a UK-focused business news reporter. Now she is covering global news from the renewable energy industry with a special interest in M&A.

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