TerraForm Power to close Saeta acquisition next week

The acceptance period for TerraForm Power Inc’s (NASDAQ:TERP) tender offer to acquire Spanish renewables yieldco Saeta Yield SA (BME:SAY) has closed and the bidder expects to complete the transaction next week, it said today.

The US renewable power plants operator, which is controlled by Canada’s Brookfield Asset Management Inc (TSE:BAM.A), announced in February a plan to acquire and delist Saeta through a voluntary tender bid of USD 12.20 (EUR 10.46) per share in cash. The tender offer got clearance from CNMV in April.

Today, TerraForm Power also said it will issue to Brookfield about USD 650 million of its Class A stock at a previously agreed back-stop price of USD 10.66 apiece. This private placement should close on or about June 11, 2018, and will provide the company with capital to fund a portion of the Saeta transaction. Brookfield’s interest in TerraForm Power after the private placement is expected to reach 65%.

The acquisition of Saeta will bring in a 1-GW portfolio of wind and solar capacity and will be highly accretive to TerraForm Power shareholders, the buyer said.

(USD 1.0 = EUR 0.857)

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