Brookfield powers ahead with takeover bid for TerraForm

Energy company Brookfield Renewable Partners has moved to take full control of TerraForm Power, it was announced on Monday.

The Wall Street-listed renewable power specialist said it had made an all-share proposal to acquire the stock it does not already own. Brookfield and its affiliates currently hold 62% of Nasdaq-listed TerraForm.

The proposal values TerraForm at $17.31 per share, an 11% premium to its 10 January closing price, or $3.93bn.

Brookfield Renewable said the deal would strengthen its position as one of the world’s largest publicly-traded renewable specialists.

Sachin Shah, chief executive of Brookfield Renewable, added: “We believe this transaction will create significant value for investors in both companies through a simplified corporate structure and continued sponsorship from Brookfield Asset Management.

“TerraForm shareholders, in turn, will benefit from access to a broader growth mandate that includes global, multi-technology and development opportunities, and increased access to capital and liquidity, underpinned by an investment grade balance sheet.”

Brookfield Renewable is the renewables arm of Canadian private equity firm Brookfield Asset Management.

TerraForm, which has a portfolio of solar and wind power assets in the US and Europe, said it had formed a special committee to assess the offer.

“The special committee, in consultation with its advisors, will carefully review and consider the pursue the course of action that it believes is in the best interest of TerraForm Power’s stockholders,” it said in a statement.

“There can be no assurance that a definite proposal relating to the proposed transaction will be made, that any such proposal will be recommended or accepted by the committee.”