Brookfield ponders takeover of SunEdison's 2 yieldcos

Solar park in India built by SunEdison. Author: American Center Mumbai. License: Creative Commons, Attribution-NoDerivs 2.0 Generic

November 11 (SeeNews) - Canada-based Brookfield Asset Management Inc (TSE:BAM.A) is exploring the ground for a potential acquisition of the two yieldcos created by bankrupt US renewables developer SunEdison (OTCMKTS:SUNEQ).

At a Wednesday meeting with board members of TerraForm Power Inc (NASDAQ:TERP) and its sister company TerraForm Global Inc (NASDAQ:GLBL), Brookfield discussed the possibility of transactions involving both yieldcos, the Canadian asset manager said in regulatory filings.

Brookfield, which is TerraForm Power’s largest stockholder in terms of Class A shares ownership, has discussed two possibilities. The first one involves the company buying shares in both yieldcos from their existing Class A and Class B stockholders, but leaving them on the bourse. That possibility will see Brookfield replace SunEdison as the sponsor of the two firms. Last month, DE Shaw Renewable Investments LLC (DESRI) made a non-binding proposal to assume that same role for TerraForm Power.

The second option envisages the outright takeover of the yieldcos for cash. Brookfield stressed that nothing has been agreed yet and that the company is not keen on acquiring only TerraForm Global.

Brookfield previously joined forces with David Tepper’s Appaloosa Management to bid for TerraForm Power. However, they did not make an actual bid.

A recent presentation by TerraForm Power shows that the company owned some 3 GW of wind and solar power plants in the US, Canada, Chile and the UK as of August 31. TerraForm Global had 917 MW of wind and solar parks in Latin America, Southeast Asia, China, India and South Africa im mid-2016.

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Ivan is the mergers and acquisitions expert in Renewables Now with a passion for big deals and ambitious capacity plans.

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