New Energy Solar, a $281m solar energy provider, is understood to be the target of a US-based fund that is circling the business as advisers weigh up a potential sale of the company.
New Energy Solar listed in 2018 and is now undertaking a strategic review.
The move comes as renewable energy investments remain in strong demand from superannuation fund investors, hoping to capitalise on the steady earnings stream amid an economic downturn.
Royal Bank of Canada and law firm Ashurst are working for the company.
Most of New Energy Solar’s assets are in the US, but its two Australian assets are larger, with attractive offtake agreements in place.
The company is largely owned by retail investors.
Its strategic review is likely to be finalised this year.
As well as a US group, other local funds are said to be looking at the Australian arm of the company.
When it listed in 2017, its assets were worth $277.2m on a net basis.
Other solar portfolios on offer in Australia include a 49 per cent stake in FRV’s portfolio, worth about $500m, and BlackRock’s Gretel Solar Portfolio, worth more than $300m.
Bids for the BlackRock portfolio are due before Christmas and binding offers at the end of February.
Add your comment to this story
Bellevue buy too challenging for Regis
Regis is understood to have backed out of the contest to buy rival gold miner Bellevue, but there are still potential suitors hovering.
CIMIC looking to cut debt with UGL sale
Investment bank Macquarie Capital is understood to have launched plans to sell UGL’s $1bn transport division, with two high profile private equity firms believed to be interested.
To join the conversation, please log in. Don't have an account? Register
Join the conversation, you are commenting as Logout