VivoPower International PLC (NASDAQ:VVPR) has signed a deal to sell its minority interests in two North Carolina solar parks totalling 90 MW, and is holding talks for the assets within its 1.8-GW US development portfolio, it said on Monday.
Specifically, VivoPower has agreed to sell its 14.5% ownership in the 47-MWdc solar plant in Maxton and its 10% ownership in the 43-MWdc facility in Bladen County to a subsidiary of sustainable investment fund New Energy Solar (NES). The latter is the current majority owner of the particular plants.
NES will pay a total of USD 11.4 million (EUR 9.8m) for the stakes. The transaction is scheduled to close within 90 days and will result in a non-cash charge of about USD 10.2 million.
VivoPower CEO Carl Weatherley-White commented that this sale follows a strategic review through which the company seeks to free up capital and reduce overhead costs.
"Following our recently announced strategic shift to a more focused solar project development strategy, we determined that owning non-control, minority interest stakes in operating solar plants had no strategic value for us and were time and manpower intensive to manage,” he stated.
The sale proceeds will go towards funding development activities, paying down debt, buying back stock or for other corporate purposes.
At the same time, VivoPower is holding active discussions with several interested parties in relation to securing co-development capital or a sale of its 1.8-GW development portfolio in the US, it said without giving more details. It is also exploring new initiatives and strategic partnerships with power off-takers.
(USD 1.0 = EUR 0.862)
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