Australian green power developer Infigen Energy has announced plans to divest its wind assets in the US to Primary Wind Power for approximately $272.5m.
The acquisition of the renewable assets by the newly developed entity affiliated with ArcLight Capital Partners follows a competitive bidding process conducted by UBS Investment Bank.
The deal, which is subject to customary conditions and regulatory approvals, is expected to close by October this year.
Infigen Energy has a total installed capacity of nearly 1,557MW in 18 wind energy facilities in the US, which includes equity interest of 1,089MW.
Infigen managing director Miles George said: "Infigen has been assessing various options to improve the capital structure of our business and unlock security holder value for quite some time.
"The sale of our US wind business is consistent with that strategic objective, represents fair value for security holders having regard to the cash flow profile of the US assets, and is a significant milestone on the path to improving the future prospects for Infigen and its security holders."
"The outlook for our remaining Australian business is positive following the recent passage of the amended renewable energy target legislation in Australia that provides policy certainty.
"The amended target requires a near doubling of large-scale renewable energy capacity in the next five years, creating opportunities for profitable growth in the industry."