MPC Caribbean shareholders approve US$3.27-million solar farm sale

MPC Caribbean Clean Energy Limited (MPCCEL) shareholders approved the US$3.27-million sale of the San Isidro solar park on Tuesday, advancing the company’s withdrawal from its renewable-energy portfolio and a planned distribution to investors — potentially its first since 2019.

The proposed sale is part of MPCCEL’s strategy to dispose of its assets and return value to Class B shareholders. The company sold its interest in Jamaica’s Paradise Park solar project for US$5.87 million in April 2025 and now plans to sell San Isidro to an unnamed family office.

“As part of the company’s broader portfolio realisation process, more than 20 potential buyers were approached regarding one or more of the company’s assets. This process generated market interest across the portfolio and ultimately resulted in a binding offer for San Isidro,” said Juan Hector Guzman, associate investment manager at MPC Capital AG, during his presentation to shareholders.

Under the agreement, MPCCEL will sell all its shares in San Isidro Fotovoltaica, S.A. de C.V. (SIF) to the family office, subject to closing conditions including regulatory approvals and third-party consents. SIF, a subsidiary of MPC Renewables Central America and Caribbean S.A., recently refinanced its senior loan as part of the transaction. At the end of March, MPCCEL valued its wider investment in MPC Renewables Central America and Caribbean at US$3.71 million.

Subject to completion, the sale would further strengthen MPCCEL’s cash position, which stood at US$4.91 million at the end of March. Chairman Fernando Zúñiga said the company also intends to monetise its remaining interests in the Monte Plata solar project in the Dominican Republic and the Tilawind wind farm in Costa Rica.

“MPCCEL was established with the objective of investing in renewable energy assets and generally holding those investments for a period of approximately six to eight years. So, the company is currently in a portfolio realisation phase consistent with the strategy communicated to the shareholders,” Zúñiga told shareholders at MPCCEL’s seventh annual general meeting (AGM).

The AGM notice said proceeds from the San Isidro sale would be distributed to Class B shareholders after MPCCEL retains sufficient liquidity and working capital to meet its obligations. Although the company’s 2025 documentation also contemplated distributing the proceeds from the Paradise Park sale, no distribution or dividend was paid that year.

MPCCEL has paid only one dividend since becoming a listed company: US$1.01 million, or US$0.089 per share, in September 2019.

Juste Kubiliute, MPC Caribbean’s head of asset management for renewable energy, said the company still intends to make a distribution this year but delayed it to combine the proceeds from the two transactions.

“The intention is still to proceed with the distribution, including the sale of Paradise Park,” Kubiliute said, adding that MPCCEL could make an interim distribution from the Paradise Park proceeds if completion of the San Isidro transaction takes longer than expected.

MPCCEL had less than US$70,000 in liabilities following the conversion of a US$10-million promissory note into 10 million Class B shares at the end of June. The conversion made RBC Trust (Trinidad & Tobago) Limited the largest Class B shareholder, with a 27.06 per cent stake.

Net assets attributable to Class B shareholders stood at US$21.22 million at the end of March. On a pro forma basis and before other subsequent changes, the debt conversion would have increased that amount to US$31.22 million, equivalent to US$0.8449 per Class B share.

“Our focus is on optimising and monetising the existing asset base and returning that to shareholders rather than pursuing mergers or expanding the portfolio through new acquisitions,” Zúñiga said.

On the Jamaica Stock Exchange, MPCCEL’s Jamaican-dollar share price was down 38 per cent year to date at J$29.00 on Monday, while its US-dollar price was down 26 per cent at US$0.23. Its market capitalisation stood at approximately US$8.50 million.

The stock has not traded on the Trinidad and Tobago Stock Exchange during 2026. Its last quoted price remained US$0.98, implying a market capitalisation of US$36.21 million, but that valuation is based on a stale trading price. The company’s second-quarter report is due by Friday.