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US Solar Fund PLC - owns and operates solar power assets in North America - Sells a purchase option for a 50% interest in its 200 megawatt DC Mount Signal 2 to MN8 Energy LLC for a non-refundable option fee of $1 million and an additional $52.2 million excluding working capital. Believes this is an ‘attractive’ opportunity to realise the value in its MS2 investment.
MS2 is the only jointly-owned asset in its portfolio.
‘We're pleased to agree this option with a high-profile renewable energy business like MN8, and we believe it is a win-win for USF. If exercised, it will monetise a significant existing asset at its current carrying value. If not exercised, it delivers an incremental $1 million of value in the current financial year. Should the sale proceed, USF will use the proceeds for new investments, working capital, and/or future capital management. A further announcement will be made at the point when the Option is exercised or expires,’ Chief Executive Liam Thomas says.
Current stock price: $0.89
12-month change: down 14%
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