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August 22, 2022

New Energy Solar plans to sell US solar assets for $244.5m

Completion of the deal would result in New Energy Solar being closed.

Australian company New Energy Solar has entered a binding agreement with a subsidiary of MN8 Energy, formerly known as Goldman Sachs Renewable Power, to sell its US solar asset portfolio for a A$352m ($244.5m) consideration.

The portfolio includes 14 solar assets and the deal would result in New Energy Solar being closed.

Under the terms of the binding agreement, New Energy Solar shareholders will initially receive A$0.82 for each share within six business days of the proposed deal.

The remaining returns of capital are expected to be between A$0.13 and A$0.163 for each share.

This will be received after the closure of New Energy Solar, which is expected to take place before the end of next year.

Shareholders are due to vote on the deal on 26 September.

Last year, New Energy Solar’s board implemented a series of strategic initiatives such as the sale of its Australian assets, a share buyback scheme and a return of capital.

These measures aimed to address the discount at which the company traded on the Australian Securities Exchange (ASX).

Despite these, the trading discount continued and, in February this year, the board decided to sell its US asset portfolio.

In a statement, New Energy Solar said: “Subject to completion of the proposed transaction and shareholder approval, the net proceeds will fund an initial return of capital of A$0.82 per share expected to be paid on or around six business days after completion of the proposed transaction.

“The balance of the net proceeds will be retained to discharge all the company’s liabilities and to meet the costs of administration until that process is complete, which is expected to occur by the end of 2023.

“At that time, subject to a further shareholder approval, a further capital return or returns will occur in respect of the cash balance remaining in NEW, estimated to be between $0.13 and $0.16 per share.”

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