Brookfield Asset proposes to take 50-60 percent stake in TerraForm Power

Fri Nov 18, 2016 1:46pm EST
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By Arathy S Nair

(Reuters) - Brookfield Asset Management Inc (BAMa.TO: Quote) proposed on Friday to take a 50-60 percent stake in bankrupt solar company SunEdison Inc (SUNEQ.PK: Quote) unit TerraForm Power Inc (TERP.O: Quote), a week after it expressed interest in buying the "yieldco".

The cash offer of $13 for class A and class B shares of TerraForm Power is nearly in line with the class A stock's Thursday close of $13.01.

The company's shares have risen 48.7 percent since Brookfield took a stake in the company on June 29, when it expressed interest in buying SunEdison's stake in TerraForm.

Yieldcos are publicly traded units that hold renewable energy assets, including those bought from the parent company.

The asset manager also said it was prepared to make an offer for SunEdison's other unit TerraForm Global Inc (GLBL.O: Quote).

Brookfield said last week it had met with TerraForm Power and TerraForm Global to discuss options for a deal. (

One option included Brookfield replacing SunEdison as the sponsor of the yieldcos, keeping them as listed entities and purchasing their class A and class B shares.

Brookfield had said it could alternatively purchase the two yieldcos for cash.   Continued...

The headquarters of SunEdison is shown in Belmont, California  April 6, 2016. REUTERS/Noah Berger