Alternus Clean Energy Inc (NASDAQ:ALCE, OTC:ACLEW) announced a strategic move to improve its balance sheet by selling its Irish subsidiary, Solis Bond Company DAC, along with its Romanian subsidiaries.
The sale to Solis Trustee Special Vehicle Limited, executed for a nominal fee of one Euro, is part of Alternus's ongoing efforts to streamline operations and reduce debt.
By divesting Solis, Alternus will eliminate approximately $100 million in debt and payables associated with Solis's activities, thereby boosting shareholders' equity by around $45 million.
Despite Solis contributing to 98% of the group’s revenues for the first half of 2024, Alternus will record the sale as discontinued operations, as it no longer has any business activities in Romania.
Alternus CEO Vincent Browne told investors that the sale aligns with the company’s efforts to reduce its debt and strengthen its balance sheet as it repositions from its exclusive focus on utility-scale solar to a “more comprehensive energy provider.”
Browne highlighted the company's recent binding agreement with Hover Energy to establish a joint venture aimed at delivering innovative clean energy microgrids as a pivotal step in diversifying its offerings, calling it “the first such example of entering additional exciting high-value complementary segments to our existing utility activities.”
In addition to the sale, Alternus is engaged in advanced discussions to acquire battery storage capabilities and expand its customer base, further reinforcing its utility and microgrid operations.
The company is also exploring additional joint ventures and investments across various energy sectors, which are expected to be accretive to the group both operationally and financially in the near and long term.