Brookfield to gain controlling stake in TerraForm Power, acquire TerraForm Global outright

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email
Brookfield will acquire a 51% controlling interest in TerraForm Power, while also owning TerraForm Global outright. Image: Brookfield

Global alternative asset manager Brookfield announced Tuesday that it has entered into a definitive agreement with SunEdison's yieldco TerraForm Power, under which Brookfield will assume the role of TerraForm Power’s sponsor and also become the controlling shareholder.

In addition, Brookfield announced that it has acquired fellow SunEdison yieldco TerraForm Global outright for approximately US$787 million, per Brookfield will also take on approximately US$455 million in net debt.  

TerraForm Global currently owns and operates a portfolio that includes 31 wind and solar power plants totaling 952 MW of capacity — located in Brazil, India, China, South Africa, Thailand, Malaysia, and Uruguay.

As part of the transaction details with TerraForm Power, Brookfield will acquire a controlling 51% of the company post-closing. TerraForm’s controlling stake was ultimately sold for US$11.46 per share.

As a result, Brookfield will provide a US$500 million sponsor equity line to support future growth, while TerraForm Power will also secure a 3.5GW right of first offer (ROFO) portfolio that includes 1.2GW of operating wind plants and 2.3GW of development-stage wind and solar projects in North America and Western Europe.

Peter Blackmore, chairman and interim chief executive officer of TerraForm Power, said: “With the successful completion of the board’s strategic alternatives process, the TerraForm Power Board and management team are confident that Brookfield’s sponsorship will enable our company to deliver cash to shareholders while strengthening our operations for future value creation.

“This agreement with Brookfield is the culmination of our efforts to separate our operations from SunEdison and to position TerraForm Power for future success. With the support of Brookfield as TerraForm Power’s sponsor, we will gain additional resources to continue to expand our portfolio and increase cash flow on a per share basis. We look forward to working with the talented Brookfield team to achieve a smooth transition.”

Sachin Shah, senior managing partner of Brookfield, added: “We are pleased to increase our significant investment in TerraForm Power and to contribute our operating expertise in the sector to position the company for growth. We are confident that our significant renewable power operating experience, financial resources and global institutional relationships will provide TerraForm Power with strong financial flexibility and an attractive pipeline for growth moving forward. We look forward to participating alongside all shareholders in capturing future upside and helping the business to achieve its full potential over time.”

TerraForm Power has also reached a settlement deal with SunEdison, under which SunEdison will renounce all ownership and claims to TerraForm Power.

Brookfield expects the transaction to be completed in the second half of 2017.

Read Next

May 5, 2021
SHV Energy, a Netherlands-based liquified petroleum gas (LPG) distributor, has acquired a majority stake in Indian solar developer SunSource Energy.
April 16, 2021
There was a more than fourfold increase in corporate solar funding in Q1 2021 compared with the same quarter last year, amid strong demand for PV assets globally, according to new analysis by Mercom Capital.
April 15, 2021
Renewable energy software providers Power Factors and Greenbyte have joined forces, creating an entity that supports more than 75GW of solar, wind and energy storage assets globally.
April 13, 2021
US independent power producer Catalyze has expanded its project pipeline to more than 2GW through the acquisition of commercial and industrial (C&I) solar developer PermaCity.
March 9, 2021
Australian utility AGL Energy has secured deals to acquire two commercial and industrial (C&I) solar companies, Solgen Energy Group and Epho, as it looks to strengthen its existing PV capabilities.
February 22, 2021
BayWa r.e. has bolstered its digital services offer through the acquisition of software platforms and data science teams of German firm Kaiserwetter.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
May 11, 2021
Upcoming Webinars
May 26, 2021
Session 1 - 7:00 AM (BST) | Session 2 - 5:00 PM (BST)
Solar Media Events
June 15, 2021
Solar Media Events
July 6, 2021