Eversource Divests Stake In JV Land For $625M
Portfolio Pulse from Nabaparna Bhattacharya
Eversource Energy plans to sell a 50% stake in a 175,000-acre uncommitted lease area to Ørsted for $625 million in an all-cash transaction. The deal is expected to close by Q3 2023. Eversource will use a portion of the proceeds to provide tax equity for the South Fork Wind project and pay off the parent company's debt.
May 26, 2023 | 1:30 pm
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NEUTRAL IMPACT
Eversource Energy is selling a 50% stake in an uncommitted lease area to Ørsted for $625 million, with proceeds to be used for tax equity in the South Fork Wind project and debt repayment.
The sale of the 50% stake in the uncommitted lease area to Ørsted is a significant transaction for Eversource Energy. However, the short-term impact on the stock price is neutral as the proceeds will be used for tax equity in the South Fork Wind project and debt repayment, which are both positive developments for the company but may not have an immediate effect on the stock price.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100