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VivoPower looks to sell stakes in 2 NC solar farms

Arowana International Ltd. and its affiliate VivoPower USA LLC asked the Federal Energy Regulatory Commission to authorize the sale of minority stakes in a pair of North Carolina solar farms to a subsidiary of New Solar Energy for $11.4 million.

Under the transaction, VivoPower will sell all of its managing membership in the 34.2-MWac Innovative Solar 31 project in Bladen County, N.C., and the 33.8-MWac Innovative Solar 47 project in Robeson County, N.C. The deal would free up capital and cut overhead expenses, the company said.

In a separate news release, U.K.-based power plant developer VivoPower International PLC described Innovative Solar 31 as a 43-MWdc plant and said it owned a 10% interest and described Innovative Solar 47 as a 47-MWdc plant and said it owned a 14.5% interest. The output of both is sold under power purchase agreements to Duke Energy Corp. subsidiary Duke Energy Progress LLC.

"Following our recently announced strategic shift to a more focused solar project development strategy, we determined that owning non-controlling, minority interest stakes in operating solar plants had no strategic value for us and were time- and manpower-intensive to manage," U.K.-based VivoPower International CEO Carl Weatherley-White said in the news release. Proceeds from the sale will be used for development activities, to pay down debt or to repurchase stock, he said.

VivoPower said it will receive cash consideration of $11.4 million for the sale and will record a noncash charge of about $10.2 million.

VivoPower is also trying to raise construction capital or sell its 1,800-MW development portfolio in the U.S.

The company's shares were up 1.66% at $2.45 in very light trading May 29.

Arowana, an Australian asset management firm, owns 60.3% of VivoPower, according to a May 29 FERC filing. New Energy Solar is a sustainable investment fund headquartered in Australia, consisting of a registered managed investment scheme, New Energy Solar Fund and New Energy Solar Ltd.

The applicants asked the commission to approve the transaction by June 25. (FERC docket EC18-95)