UPDATE - SunEdison yieldco loses 2.7 GW of potential buys in Brazil

The call rights list of TerraForm Global Inc (NASDAQ:GLBL) has been reduced by 2.7 GW as its parent, SunEdison (NYSE:SUNE), has cancelled not one but two deals concerning shares and assets of Brazil’s Renova Energia SA (BVMF:RNEW11).

It was announced on Tuesday that the US renewables company will not complete its USD-250-million (EUR 236.2m) acquisition of a 15.9% stake in Renova from energy group Light SA (BVMF:LIGT3). Today SunEdison said it has also terminated an agreement to buy certain development-stage projects from Renova between 2016 and 2020.

The US company was supposed to sell these projects, upon completion, to its yieldco TerraForm Global. The so-called backlog deal covered 12 Brazilian wind and hydropower projects in various stages of planning and development that represented an aggregate capacity of about 2.7 GW. The aggregate consideration for these projects was projected at around USD 4 billion.

In its statement, SunEdison pointed out that it had to terminate the share purchase agreement with Light because certain conditions precedent to closing were not met. Still, SunEdison will not scrap its previously announced 50/50 joint venture with Renova for the development of 1 GW of utility-scale solar photovoltaic (PV) projects to supply the Brazilian Regulated Electricity Market, it noted.

"While it is disappointing that the agreement was terminated, we remain committed to Brazil," said Brian Wuebbels, SunEdison's CFO and TerraForm Global's CEO.

(USD 1.0 = EUR 0.945)

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