January 13 (Renewables Now) - Brookfield Renewable Partners LP (NYSE:BEP) on Monday announced an offer to buy the remaining 38% stake in TerraForm Power Inc (NASDAQ:TERP), valuing the company at USD 17.31 (EUR 15.56) a share.
Brookfield Renewable, which currently owns 62% of TerraForm together with affiliates, is proposing consideration equivalent to 0.36 of a Brookfield Renewable unit for each Class A common share of TerraForm Power. Consideration for the deal will be in the form of Class A shares of Brookfield Renewable Corporation (BEPC). The offer represents a 11% premium to the US renewable power producer's closing price on January 10.
“For Brookfield Renewable unitholders, this transaction is expected to be immediately accretive and further expands our portfolio in North America and Western Europe, all while delivering returns in-line with our targets. Further, the proposed transaction will enhance the liquidity of BEPC's shares,” Brookfield Renewable CEO, Sachin Shah, commented.
Meanwhile, TerraForm Power will gain access to global, multi-cultural and development opportunities and benefit from better access to capital and liquidity, he added.
Brookfield Renewable made its offer to TerraForm Power's board on January 11. The transaction needs to be approved by the independent directors on TerraForm's board and also by a majority of the shareholders in TerraForm Power that are not affiliated with Brookfield Renewable.
According to its website, TerraForm Power's portfolio has a total capacity of about 4.1 GW, more than half of which is in the US. Out of the total, wind power accounts for about 2.4 GW, while solar power amounts to about 1.7 GW.
Brookfield Renewable is the renewable power arm of Brookfield Asset Management Inc (NYSE:BAM).
(USD 1.0 = EUR 0.899)