Northland Power Inc. (Northland) (TSX: NPI) announced it has entered into an agreement to sell the La Lucha solar facility to Cometa Energía, S.A. de C.V., wholly owned by Saavi Energía (Saavi). La Lucha is a 130-megawatt solar facility located in Durango, Mexico that is wholly owned by Northland. The facility achieved commercial operations in June 2023.
“This transaction reflects Northland’s strategy to recycle assets from non-core markets to generate liquidity and simplify our overall business towards operating in core markets,” said Mike Crawley, President and Chief Executive Officer of Northland.
The sale is expected to close in 2024, upon satisfaction of customary closing conditions, including finalizing insurance placement, lender approval and approval of the Federal Economic Competition Commission (COFECE), required under applicable anti-trust laws in Mexico. Northland expects to receive approximately $205 million in cash after taxes, transaction fees and other customary adjustments. Proceeds will be initially used towards repayment of amounts drawn on the Company’s revolving credit facility and for general corporate purposes.
