HC2 Holdings, Inc. (HC2) has announced the sale of its majority-owned clean energy subsidiary Beyond6, Inc. (Beyond6) to Mercuria Investments US, Inc. (Mercuria) for approximately $169 million. HC2, which owns approximately 61 per cent of Beyond6 on a fully diluted basis, expects to receive approximately $65 million in cash. HC2 intends to use its portion of the net proceeds from the transaction to reduce debt. The transaction is expected to be completed in the first quarter of 2021, subject to regulatory approval and customary closing conditions. The transaction was unanimously approved by the Board of Directors of HC2. Mercuria, a leading integrated independent energy and commodities company has stated that 50 per cent of its new investments would be in the renewable energy industry over the next five years.
Goldman Sachs & Co. LLC is acting as advisor to Beyond6 for this transaction. Kramer Levin Naftalis & Frankel LLP is acting as legal advisor to HC2, and Vinson & Elkins LLP is acting as legal advisor to Mercuria.
“The sale of Beyond6 is another significant step forward for HC2 as our Board continues to actively evaluate businesses across our portfolio and monetize assets that improve our capital structure and provide increased flexibility, which will allow us to more effectively allocate resources to high growth, value generating areas of the business,” said Wayne Barr, Jr., chief executive officer of HC2. “The net proceeds from the sale will allow HC2 to significantly reduce debt as we continue to chart our path forward,” he added.
“Mercuria is excited to continue to execute on its corporate strategy of increased investment in the energy transition to clean, renewable energy sources,” Brian Falik, chief investment officer, Mercuria.