According to the terms of the agreement, Toronto-based Brookfield has until 21 February to finalise a takeover of TerraForm Power and until 6 March to reach a deal for TerraForm Global.
Brookfield has offered $12 per share for TerraForm Power, as long as it is also able to acquire at least half of TerraForm Global. It has also offered to pay $4.35 a share for 100% of the shares of Terraform Global or $4.25 to acquire 50.1%.
SunEdison formed the two yieldcos as part of an expansion effort that left it overextended and forced to declare bankruptcy last April.
The companies have been in talks with SunEdison to unwind their complex legal relationship and announced Monday they have each entered into memorandum of understanding with their parent.
Under the terms of the agreement, SunEdison would receive 36.9% of any amount paid for TerraForm Power and 25% of the total paid for TerraForm Global.
Brookfield, which currently owns about 12% of Terraform Power, has significant power generation experience.
Through its unit, Brookfield Renewable Energy Partners, it owns 10.7GW of operating renewables capacity today, about 88% of it hydro.
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