Canada’s Brookfield Renewable Partners on Monday offered to
buy out all the shares of yieldco TerraForm Power that it does not
already own, potentially adding further heft to what is already one
of the world’s largest clean-energy generators.
Brookfield Renewable — backed by Canadian alternative-asset
giant Brookfield Asset Management — is already the majority
owner of New York-based TerraForm Power. It acquired a 51 percent
stake in 2017 in the wake of SunEdison’s bankruptcy, and has
increased its stake since then.
Brookfield also bought out SunEdison’s second yieldco,
TerraForm Global. But while it eventually delisted those shares,
TerraForm Power has continued to trade publicly with a large
minority of its shares held by other investors.
Brookfield Renewable has now bid to buy those up outstanding
shares for $17.31 apiece in an all-share deal, offering the
equivalent of an 11 percent premium to TerraForm Power’s closing
price on Friday. Shares of TerraForm Power rose more than 10
percent on Monday morning, to around $17.20, giving it a market
capitalization of $3.91 billion.
The deal would further build on the trend of U.S. renewables
operators being taken private or absorbed by larger investors —
many of them institutional in nature, many of them Canadian.
In November Pattern Energy, one of North America’s leading
wind farm owners, agreed to be acquired by the Canada Pension Plan
Other yieldcos to have been taken private amid disappointing
interest from public-market investors in recent years include NRG
Yield (now part of Clearway Energy) and 8point3 Energy Partners,
the joint venture of First Solar and SunPower that’s now part of
Brookfield claims an 18-gigawatt base of renewable energy and
storage assets globally, skewing toward hydropower and with a large
portfolio in South America.
While the majority of TerraForm Power’s own 4 gigawatts of
capacity is North American wind, the company has pushed into
distributed generation in recent years, including a
deal for more than 300-megawatts of behind-the-meter solar last
Rather than continuing to operate Brookfield Renewable and
TerraForm Power separately, it makes sense to move to a
“simplified corporate structure,” Brookfield Renewable CEO
Sachin Shah said in a statement.
Brookfield said the deal would strengthen its position as “one
of the largest publicly-trade, globally-diversified,
multi-technology, pure-play renewable power platforms” in the
world, with $50 billion in total power assets.
In a statement of its own, TerraForm Power confirmed the
unsolicited proposal from Brookfield Renewable, and said it has
formed a special committee of independent directors to review the
Source: FS – Transport 2
Brookfield Renewable Bids to Buy Remaining Stake in TerraForm Power