French renewable energy developer Neoen is contemplating the sale of a 30% stake in its Australian subsidiary, a Bloomberg has reported, citing people familiar with the matter.
The move aims to raise more than €1bn ($1.1bn) to finance the company’s growth in Australia beyond 2025. This strategy would allow it to avoid issuing new shares for the Paris-based parent company.
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The potential sale, advised by a financial consultant, could occur in the latter half of the year. However, no definitive decision has been reached.
The company has declined to comment on these private discussions. Amidst high trading levels in US and European markets, its shares have seen a 16% decline this year.
Its performance has been affected by investor worries over rising interest rates and equipment costs, which could impact returns from solar and wind projects.
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In March 2023, Neoen announced an unexpected €750m capital increase to boost growth and expedite its battery storage ventures, further influencing its market position.
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By GlobalDataOwned 42% by Impala SAS, Neoen has indicated a willingness to ‘selectively reduce its ownership in certain assets’ to support its expansion.
With over 3.75GW of assets in Australia, making up 47% of its portfolio, Neoen has established significant energy storage projects like the Hornsdale Power Reserve and the Victorian Big Battery.
In June last year, The Australian Energy Market Operator (AEMO) had selected Neoen to build a 197MW battery energy storage system (BESS) in Western Australia (WA).
This contract to build the battery with a four-hour storage capacity was won in a competitive tender launched by the Western Australian co-ordinator of energy.
In the previous year, it also secured solar tenders amounting to 238.5MW from the French Government. These projects were divided into two categories, with Neoen winning two ‘canopies and buildings’ projects totalling 16.9MW and 15 ‘large-scale ground-mounted’ projects totalling 221.6MW. Neoen’s French portfolio now exceeds 2GW.
