New Energy Solar has announced it has sold its Australian assets—Beryl and Manildra solar farms—to Thailand’s Banpu Energy and affiliates in an effort to reduce the gap between its net asset value and trading price following its 2020 strategic review undertaken by RBC Capital Markets.
The gross asset value is to a value of $288 million and gross equity proceeds, before transaction costs, of $105.4 million.
Transaction completion is expected within two months, subject to customary consents and approvals, including Foreign Investment Review Board approval.
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The expected equity proceeds, before transaction costs, are A$62.5 million for Beryl and A$42.9 million for Manildra. The net asset value of these plants at December 31, 2020, was $60 million and $50.5 million respectively. Transaction costs include approximately $3 million in adviser costs; a disposal fee payable to the Investment Manager; and stamp duty will be deducted from the gross asset proceeds. The discount to net asset value for Manildra is primarily a reflection of the impact of curtailment caused by grid constraints that have recently emerged near the site in the central west of NSW.
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New Energy Solar said in a statement, “NEW is now well progressed on these initiatives given the sale of a 25 per cent interest in NEW’s largest plant, Mount Signal 2, in California at the end of 2020, the granting of an option to US Solar plc to acquire a further 25 per cent interest in Mount Signal 2, and the Sale announced today.”
Banpu Energy is a subsidiary of BANPU Public Company Limited, a leading international versatile energy provider based in Thailand, with total assets of over $12 billion and 1,073 MW of committed renewable energy projects.