Comprehensive M&A data with integrated detailed company information
Brookfield Renewable to acquire remaining shares in TerraForm Power
Posted on Monday, 13 January 2020 14:22
Brookfield Renewable Partners has tabled a non-binding all-share proposal to pick up the remaining 38.0 per cent stake in TerraForm Power in a deal worth around USD 3.93 billion.
The acquiror is proposing 0.36 of its stock for each one held in the target, representing an offer price of USD 17.31 apiece, which is a premium of 11.0 per cent to the group’s close of USD 15.60 on 10th January 2020, the last trading day prior to the announcement.
Brookfield Renewable already owns 62.0 per cent of TerraForm Power and is expecting the acquisition of the remaining shares to position it as one of the largest publicly-listed pure-play renewable power platforms.
The combined group will have USD 50.00 billion in total power assets, a market capitalisation of USD 16.00 billion and a 20-year track record of delivering 18.0 per cent annualised returns to unitholders since inception.
Brookfield Renewable tabled its offer on 11th January 2020 to the board of TerraForm Power and cautioned there is no guarantee they will approve the deal.
Closing remains subject to a definitive agreement by the two parties, the green light from the board and shareholders and regulatory approvals.
TerraForm Power confirmed it had received the proposal and has formed a special committee to review the offer but has told its investors not to take action at this time.
The business operates a best-in-class renewable power portfolio of solar and wind assets, located primarily in the US, as well as across Europe, with a total capacity of 4,000 MW.
In addition to the transaction, Brookfield Renewable has also announced a 5.0 per cent quarterly distribution increase, bringing its annual payout to USD 2.17 per unit, as a result of its recent growth, strong balance sheet and access to capital.
The group is expecting to further expand its global renewable portfolio in North America and Western Europe as a result of buying TerraForm Power.
© Zephus Ltd