American Electric Power To Sell 50% Stake In New Mexico Renewable Development To Exus
American Electric Power Company, Inc. (AEP) has reached an agreement to sell its 50 percent stake in New Mexico Renewable Development, LLC (NMRD) to Exus North America Holdings, LLC. Exus, an independent investment and asset management firm, will acquire AEP’s stake for approximately $115 million. After tax and other adjustments, AEP expects to receive around $104 million in cash from the transaction.
NMRD’s portfolio comprises nine operating solar developments with a combined capacity of 185 MW. Additionally, the company has six projects in progress, which are estimated to generate an output of 440 MW, according to AEP. The deal between AEP and Exus is set to close in February 2024.
AEP clarified that the sale of its stake in NMRD will not have a significant impact on its financial results. Currently, in pre-market trading, AEP shares are being traded at $81.57, reflecting a 1.48% increase on the Nasdaq.
The agreement between AEP and Exus highlights the ongoing interest in renewable energy development and investment. With NMRD’s existing solar projects and the potential for future expansion, Exus aims to capitalize on the growth and opportunities within the renewable energy sector.
As the shift towards cleaner energy sources continues to gain momentum globally, investing in renewable development projects becomes increasingly attractive for asset management firms like Exus. The acquisition of AEP’s stake in NMRD aligns with Exus’ goal of bolstering its renewable energy portfolio and supporting the transition to a greener future.
Both AEP and Exus recognize the importance of sustainable energy solutions in addressing climate change and meeting the growing demand for clean electricity. This transaction not only allows AEP to divest its stake in NMRD but also contributes to the continued growth and advancement of renewable energy in New Mexico.
The news of the sale comes amidst increased attention and investment in renewable energy projects worldwide. Governments, corporations, and investors are actively seeking opportunities to reduce carbon emissions and promote a more sustainable energy landscape.
By selling its stake in NMRD to Exus, AEP is taking a strategic step to reallocate its resources and focus on other areas of its business. This transaction marks a significant milestone for both companies and reinforces their commitment to renewable energy development and investment.
As the deal moves forward, AEP and Exus will work together to ensure a smooth transition of ownership and operations. The agreement is subject to regulatory approvals and customary closing conditions.
Overall, the sale of American Electric Power Company’s 50 percent stake in New Mexico Renewable Development to Exus North America Holdings represents a notable transaction in the renewable energy sector. The deal underscores the importance of partnerships and investments in renewable projects as the world continues to embrace a cleaner and more sustainable energy future.
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