Brookfield to buy SunEdison units in $1.41bn deal

Brookfield Asset Management has announced that it is tobuy one of the two “yieldcos” of bankrupt US solar power company SunEdison and take a 51 per cent stake in the other, for a total of about $1.41bn.

Canada‘s largest alternative-asset manager is increasing its holding in TerraForm Power after first reporting a stake in June, when it called the SunEdison unit an “attractive investment opportunity”.
Yieldcos are publicly traded units that hold renewable energy assets such as solar power plants and wind farms, including those bought from the sponsor or the parent company.

They have long-term agreements to sell power, giving them stable cash flows, but they are dependent on the transfer of assets from their parents to increase dividends.

TerraForm Global owns or has contracts to acquire 952 MW of wind and solar power in Brazil, India, China, South Africa, Thailand, Malaysia and Uruguay.

It also owns about 2,967 MW of solar and wind assets in the United States, Canada, the United Kingdom and Chile.

Brookfield, which owns over 17,000 MW of renewable energy assets, will replace SunEdison as TerraForm Power’s sponsor once the deal closes. It had a 12.16 per cent stake in TerraForm Power, per Thomson Reuters data.

SunEdison, once the fastest-growing U.S. renewable energy company, filed for Chapter 11 bankruptcy protection last year.

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