07:15 AM EST, 03/05/2024 (MT Newswires) -- National Bank on Tuesday reviewed Northland Power Inc.'s ( NPIFF ) deal to sell the La Lucha solar facility to Cometa Energia SA de CV, a wholly owned by Saavi Energia (Saavi).

La Lucha is a 130-megawatt solar facility located in Durango, Mexico. The facility achieved commercial operations in June 2023.

The company said overnight Monday that it plans to use the proceeds from the sale, which is expected to close in 2024, initially for the repayment of amounts drawn on the company's revolving credit facility and for general corporate purposes.

"While the sale of La Lucha was anticipated, the transaction price is attractive, and it is good to see NPI refocused on core markets where it can build scale on attractive terms. NPI's focus is the execution of its construction projects, but investors want to see development of new projects and NPI is now well funded for this activity," the analysts said.

National Bank, which has an outperform rating on the company and a price target of C$34, said the company is exiting the non-core solar asset in Mexico for more than $200 million.