Brookfield bids to take full control of TerraForm

Canadian owner-operator Brookfield Renewables has launched a takeover bid for TerraForm Power, proposing to buy all the outstanding shares in the clean energy developer.

by Craig Richard 13 January 2020

TerraForm Power has stakes in nearly 2.4GW of operational wind capacity

Brookfield valued the remaining shares in the developer at $17.31 each — an 11% premium on the developer’s closing price on 10 January.

TerraForm’s stock opened at $17.20 on 13 January, up 10% from its previous close.

Its board has formed a special committee of non-executive, independent directors and is currently engaging financial legal advisers to help review the proposal, TerraForm stated.

Brookfield and its affiliates already own 62% of TerraForm.

The owner-operator’s CEO Sachin Shah explained the acquisition would help it expand its renewables portfolio in North America and western Europe.

TerraForm has stakes in 2,392MW of wind and 1,674MW of solar PV facilities.

Most of this is in the US (1,536MW wind, 1,239MW solar PV) and Europe (683MW wind, 265MW solar PV).

It also has stakes in 146MW of wind and 68MW of solar PV in Canada, 102MW of solar PV in Chile, and 95MW of wind in Uruguay.

The transaction is subject to the negotiation and execution of definitive transaction documents, regulatory approvals, directors’ approval, and the approval of a majority of TerraForm’s stockholders unaffiliated with Brookfield Renewable, the company stated.