Enphase Energy UK has announced plans to sell its shares in the world’s biggest uranium producer after falling more than 30 per cent in value in just a few days.
Enphase, which operates in the UK and Ireland, said on Thursday it had sold almost half its stock in the US energy giant after the company said it was facing a major cash shortfall.
The UK-based company said the sale of shares in Enphase would enable it to take on more debt and continue the exploration of uranium.
Enphases shares have fallen about 30 per one cent in the past 24 hours, but Enphase is confident the price will rebound in the coming weeks.
EnPhase Energy UK said in a statement that it had “completed a substantial restructuring programme” and “is now confident we can continue to invest in the business” in the face of the company’s “significant financial and operational challenges”.
The company said that it expects the full-year financial results for 2019-2020 to be “better than expected”.
The sale of the shares is part of a broader restructuring programme that will involve the company buying back shares and reducing its debt, the company added.
The company also said it will be selling its energy business, the energy giant Hydro One, and a separate energy business called Hydro One Energy.
EnPhases shares plunged more than 32 per cent after Enphase said it would close its Irish and UK operations.
The shares have plunged more in the last 24 hours compared with a period when EnPhasers share price had fallen just 2 per cent.
Mr Eames said the company had already made “a substantial amount of investment in the energy sector” to increase its competitiveness and to provide “better value to shareholders”.
EnPhase Energy UK also said in the statement that its debt was “significantly reduced” to less than $US10 billion.
The move will enable the company to take “a significant reduction in debt” and continue “investing in the strategic businesses that are in the best interests of the group”, the company also added.
“This will allow us to continue to accelerate our efforts to drive our business and achieve our targets,” it added.
EnRhine Energy, EnPhrase’s parent company, also said on Wednesday it had announced it would reduce its debt from about $US2 billion to $US1 billion.
En Rhine Energy UK announced that it would also be selling assets, including its oil and gas company, Energy Resources, and its coal mining company, Enbridge Energy.
The announcement follows a “major restructuring” of EnPhaser’s UK business, which has included the sale, on Wednesday, of its uranium business, EnRhines Energy, and the divestment of its coal business, Energy Resource.
The divestment was a part of the broader restructuring plan, which is also being overseen by EnRhiner, which also owns EnPhasis.
EnReve Energy UK, Enphase Energy’s parent, has also announced that the company would be selling a significant amount of its assets, such as the energy assets EnPhasing, and has also sold its energy businesses.
The firm is in talks with the European Commission about whether it can continue operating its existing UK operations, the firm added.
Energy Resources shares fell more than 2 per,000 in late trading on Wednesday.
EnEnergy said that its share price has been “significantly improved” since it announced the divestiture on Tuesday, with a return of about 2 per per cent on Wednesday afternoon.
The price of Energy Resources stock fell more on Wednesday after EnEnergy announced it was to sell a substantial amount.
The energy company said its shares had fallen about 28 per cent over the last two days, but “this has largely been driven by the drop in EnPhased shares, which are now trading below their peak price of about $50.”
EnEnergy also said that the divestement of its energy assets was part of its “massive restructuring programme”, which included the “sale, on behalf of EnRhina, of energy assets in the United Kingdom, and on behalf to the European Union, of coal, iron ore and shale gas assets”.
Energy Resources also said its cash flow for the quarter had “improved significantly”.
“We believe that the combination of our financial strength and strategic focus will allow our business to be stronger and faster in the future,” Energy Resources added.
Mr Jones said EnEnergy was an “inspirational company” and would “make a great contribution” to the UK’s energy future.
“We will be investing in the industry that provides the best value for the customer, and we expect our shareholders to be confident about the direction we are going to take the business forward,” he said.
En Energy shares were up more than 12 per cent for the week on Wednesday on news of the divestments.
EnSpeak Energy shares fell slightly on Wednesday when the company announced it planned