Independent power producer Etrion Corp (TSE:ETX) today said it has agreed to sell its 45-MW Niigata solar project in Japan to a Japanese consortium composed of Renewable Japan Co Ltd and Daiichi Life Insurance Co Ltd.
Niigata is being sold by Etrion’s subsidiaries with its project debt for a net price of about JPY 6.3 billion (USD 57.6m/EUR 48.4m), subject to some adjustments at closing. The Japan-focused solar company expects to close the sale by end-June 2021 after receiving all necessary regulatory, shareholder and third-party approvals.
The solar farm, which will produce 45 MW of DC power, is currently under construction and is due to be hooked to the grid in the fourth quarter of 2021.
Etrion recently announced a deal to sell its Komatsu, Shizukuishi and Mito operating solar farms totalling 47.2 MW in Japan. The sale of Niigata and the other three assets would represent a sale of all or substantially all of the company’s undertaking and would need to be approved at a shareholder meeting scheduled for May 27, 2021, Etrion explained.
Following the asset disposal, Etrion plans to distribute most of the proceeds to shareholders via a return of capital.
If the sales are finalised, Etrion may consider new business opportunities. However, if no attractive ventures are found within a reasonable time span, the board plans to dissolve the company, settle any outstanding liabilities and distribute any remaining monies to the shareholders.
Etrion’s largest shareholder is Sweden’s billionaire Lundin family with a stake of about 36%.
(JPY 100 = USD 0.914/EUR 0.768)