Brookfield to Acquire SunEdison’s Renewable Yieldcos in $1.41Bn

Company - Pavan Pandey - Mar 08,2017

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brookfield to acquire sunedisons renewable yieldcos in 141bn dollars

Global leading alternative asset manager, Brookfield Asset Management Inc., stated it would be purchasing one of two yieldcos belonging to solar company SunEdison Inc.

SunEdison Inc., presently regarded as a bankrupt solar company, controls the yieldcos through its stakes in their Class A and Class B shares. In April 2016, the company was filed for bankruptcy, listing $16.1 billion in liabilities.

According to a statement by Brookfield, it already owns approximately 34 percent of TerraForm Power Inc.

On the basis of the unification contract, which highlights a premium of roughly 50% to TerraForm Global’s closing share price as recorded in September 2016.

All the unsettled Class A shares of TerraForm Global Inc. would be bought by Brookfield Asset Management Inc. at a specified value worth $5.10 a share in cash.

Last June, SunEdison was tagged as a tempting investment opportunity by the Canadian investment company Brookfield.

The Chairman and Acting Chief Executive Officer of TerraForm Global Inc., Mr. Peter Blackmore, said: “We are pleased to have reached a successful completion of TerraForm Global’s strategic alternatives process to maximize value for our shareholders.”

Mr. Blackmore further added that the company is totally assured that the deal withBrookfield is the best possible agreement for the shareholders; moreover, the company is ready to work closely with a highly skilled team managed at TerraForm Global.

According to Mr. John Dubel, the Chief Executive Officer and Chief Restructuring Officer of SunEdison Inc., the company is supportive of this deal and believes it would work to enhance the value for independent stakeholders along with a positive increase for the estate as well

Presently, TerraForm Global manages bonds to obtain 952 MW (megawatts) of the wind and solar power in India, China, Malaysia, Thailand, Brazil, Uruguay and South Africa. The firm already owns approx. 2967 MW of wind and solar assets in several OECD countries like the United States and the United Kingdom.