New Energy Solar Ltd(ASX:NEW) has agreed to sell its US solar portfolio to an associate of financial services group Goldman Sachs (NYSE:GS) in a $244.5 million (€244 million) deal that will lead to the Australian company collapse.
The Sydney-based solar investor said on Monday (Aug 22) it had signed a binding agreement to sell its remaining 14 solar farm portfolio in the US to a unit of MN8 Energy LLC , the division was formerly known as Goldman Sachs Renewable Power LLC. The deal was finalized after granting a period of exclusivity to the buyer as new energy solar struggled to gain traction in the stock market.
The proposed transaction would result in a net gain of $224 million for the Australian company and a return on total capital of up to A$0.98 ($0.68/€0.67) per share. With an initial capital return of A$0.82 per share, shareholders of New Energy Solar will receive a further return of A$0.13 to A$0.16 per share when the company is wound up, possibly before the end of 2023.
The divestment in the U.S. and the final winding-up of the company are subject to shareholder and regulatory approval. Shareholders will vote on the deal on September 26.
If approved, New Energy Solar will be delisted from the exchange and will end its activities upon completion of the sale. The company noted that it has made a series of strategic moves, share repurchases and capital returns, but has failed to attract investor interest and deal with continued trading discounts on its shares.
The sale of a 167MW DC solar park in NSW to Thai energy group Banpu PCL(BKK:BANPU) for A$288 million last summer was also part of the plan.