Law firm to check if SunEdison abused position in 1st yieldco
First Wind's 51-MW Kaheawa park in Hawaii. Author: Jim Larrison. License: Creative Commons, Attribution 2.0 Generic
Berman DeValerio is investigating whether SunEdison Inc (NYSE:SUNE) abused its position as the controlling shareholder of TerraForm Power Inc (NASDAQ:TERP) in several acquisition deals this year.
The US law firm said Monday it has started an investigation into possible breaches of fiduciary duties related to transactions involving the US renewable energy major and its first yieldco vehicle.
“Since the beginning of 2015, SunEdison has made at least two joint acquisitions with TerraForm in which the Company and its minority shareholders may have unfairly subsidized the acquisition of valuable assets on behalf of SunEdison,” Berman DeValerio says in a press release. It is investigating whether the yieldco’s board of directors met its fiduciary duties to ensure that these deals were fair and in the best interests of TerraForm.
One of the biggest acquisitions made by SunEdison and TerraForm Power involved the USD-2.4-billion (EUR 2.15bn) takeover of First Wind Holdings LLC, which was concluded early this year.