TerraForm Global investors clear takeover by Brookfield

Wind turbines in Illinois. Author: Chauncey Davis. License: Creative Commons. Attribution 2.0 Generic.

November 14 (Renewables Now) - The stockholders of US renewables yieldco TerraForm Global Inc (NASDAQ:GLBL) have cleared the company’s pending takeover by Canada’s Brookfield Asset Management Inc (TSE:BAM.A).

Brookfield has already taken control of TerraForm Global’s sister company -- TerraForm Power Inc (NASDAQ:TERP). The Canadian asset manager agreed both transactions in March 2017. Under the terms of the deal involving TerraForm Global, Brookfield will pay USD 5.10 per Class A share in cash, or a total of USD 787 million (EUR 671m) plus the assumption of some USD 455 million in net debt.

The yieldco said in a statement that the closing of the transaction is dependent on the final dismissal with prejudice or settlement of certain securities litigation cases. It added that, at the end of last month, the company had reached an agreement with lead plaintiffs in the case including all of the class action claims against TerraForm Global in connection with its initial public offering (IPO). They have agreed to settle the case on a class-wide basis for USD 57 million and have informed the court about that on November 1. The two sides are now working to prepare settlement documentation, according to the statement.

At the same time, TerraForm Global is trying to resolve other securities litigation matters, tied to private placement offerings.

Both TerraForm Global and TerraForm Power were created by SunEdison (OTCMKTS:SUNEQ).

(USD 1.0 = EUR 0.853)

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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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