SunEdison Inc (OTCMKTS:SUNEQ) has finally sold its Australian assets. After much speculation and recent reports, SunEdison has sold its assets in the Land Down Under to Flextronics International Ltd. (NASDAQ:FLEX), a U.S.-based manufacturing giant. Flextronics was chosen after bids from a dozen domestic and foreign businesses.
SunEdison Inc Sells Australian Assets to American Giant
Flextronics will pay $8.7 million to the bankrupt solar firm for its assets in Australia. U.S. bankruptcy court filings show that some of the assets include the Australian business and the residential solar businesses situated in other countries.
SunEdison decided to go with a firm it already knows. Flextronics presently makes solar modules for SunEdison. Flextronics also makes battery storage devices for Redflow, an Australian company.
Flextronics’s purchase will now have to go through court approval.
The court documents show that Flextronics received a bargain for the Australian assets. SunEdison had spent around $20 million just to set foot in Australia in 2014. With solar power becoming a bigger deal in Australia, and costs starting to finally dip, Flextronics may have made the right move.
Flextronics shares were down to start Monday’s trading session. Year-to-date, shares are up 16 percent at $13.
Last month, it was reported that Ingenious Clean Energy, a green energy investment firm in the United Kingdom, was a likely buyer. It had been noted that Ingenious was at the front of the line for SunEdison’s assets. The investment group wanted to invest in solar projects of 5MW in Australia. Ingenious is planning to establish a huge solar portfolio in Australia within the next three years.
After facing financial difficulties and seeing 99 percent of its stock vanish, SunEdison filed for Chapter 11 bankruptcy protection in late April. Since then, it has been trying to unload its portfolio of solar and wind assets in the U.S., India and elsewhere around the world.
It was estimated last week that its assets are worth up to $1.5 billion.
A Brief History of SunEdison’s Asset Sale
SunEdison faces $16 billion worth liabilities. In a bid to pay off its creditors, it has started to sell off its assets. India has been the most noteworthy as it is striking up deals across the emerging market.
The bankrupt solar firm has sold off assets to the likes of Amplus Energy and Adnani Energy Group. It has also started talks with an array of domestic and international firms interested in grabbing a pie of India’s aggressive green energy plan.
In the U.S., meanwhile, SunEdison is looking to sell its stake in a California solar plant in construction worth $80 million. It also sold off rights to the King Pine Wind Project to Pattern Energy Group.
Rothschild was tapped in early May to be in charge of the sale of its assets.
There have also been reports that SunEdison is looking into selling interests in its two yieldcos – TerraForm Power Inc (NASDAQ:TERP) and TerraForm Global Inc (NASDAQ:GLBL). A regulatory filing released last week noted that SunEdison is in “active discussions” for a joint sale. The likely buyers would be Brookfield Asset Management and Appaloosa Management, two of the biggest shareholders in the yieldcos.
Last month, SunEdison received notice that it would be given new funding to operate in bankruptcy.