Energy World (ASX:EWC) agreed to sell its Siemens gas and steam turbines for $350 million to NASDAQ-listed Hallador Energy, according to a Tuesday Australian bourse filing.
Under the terms of the sale, the gas turbines are required to be inspected and refurbished by a recognised original equipment maintenance provider in the US. Hallador agreed to fund the baseline estimate of $22 million, and additional work costs of up to a further $22 million will be shared equally between both firms.
Dismantling and export costs will be for Energy World's account, but funded by Hallador from the consideration. Transportation and importation costs will be shouldered by Hallador in addition to the purchase price.
The sale represents the execution of a strategic review and evaluation of monetization opportunities across its asset base, per the filing.