January 14 (Renewables Now) - TerraForm Power Inc (NASDAQ:TERP) on Monday said it has created a special committee to review the unsolicited, non-binding buyout offer tabled by Brookfield Renewable Partners LP (NYSE:BEP) on January 11.
The offer for a 38% stake in TerraForm Power values the company at USD 17.31 a share (EUR 15.54). 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), a Canadian subsidiary of Brookfield Renewable that will be publicly traded. The proposal represents a 11% premium to the US renewable power producer's closing price on January 10.
TerraForm Power's committee of non-executive, independent directors will appoint financial and legal advisors and together they will consider the offer and decide on the course of action that is in the best interest of the company's shareholders, according to the statement.
(USD 1.0 = EUR 0.898)