- New Energy Solar (NEW) to sell its two Australian solar farms, Beryl and Manildra, to Banpu Energy Australia for an estimated $105.4 million
- The move forms part of NEW’s initiative to reduce a gap between its net asset value and its share price following a strategic review by RBC Capital Markets
- Proceeds from the sales, which are set to be finalised within two months, to go towards repaying group debt
- Specifically, expected equity proceeds before transaction costs are anticipated at $62.5 million for Beryl and $42.9 million for Manildra
- New Energy Solar shares are up 1.2 per cent to trade at 84 cents
New Energy Solar (NEW) is set to sell its two Australian solar farms, Beryl and Manildra, to Banpu Energy Australia for an estimated $105.4 million.
According to NEW, the sale forms part of its initiatives to reduce the gap between its net asset value and its trading price following a 2020 strategic review of the Business undertaken by RBC Capital Markets.
Net proceeds from the sale are set to repay group debt and reduce gearing below its long-term target of 50 per cent and to buy back NEW securities.
The transaction is expected to be completed within two months subject to customary consents and approvals including Foreign Investment Review Board (FIRB) approval.
Specifically, expected equity proceeds before transaction costs are anticipated at $62.5 million for Beryl and $42.9 million for Manildra.
New Energy Solar affirms the proportion of the sale price for the Beryl plant is above the net asset value, while the proportion attributed to the Manildra plant is below its net asset value due to transmission constraints recently impacting the site.
New Energy Solar shares are up 1.2 per cent to trade at 84 cents at 12:32 pm AEST.