Brookfield-backed TerraForm bids $1.2 bln for Saeta Yield: Reuters


Group of solar panels and wind turbines on a blue sky with clouds and sun rays. Solar and wind energy; Photo courtesy of Alberto Masnovo/iStock/Getty Images
Group of solar panels and wind turbines on a blue sky with clouds and sun rays. Solar and wind energy; Photo courtesy of Alberto Masnovo/iStock/Getty Images

TerraForm Power Inc, controlled by Canada’s Brookfield Asset Management, has launched a 995 million euro (US$1.2 billion) takeover bid for Spanish renewable energy company Saeta Yield to expand its presence in Western Europe.

TerraForm is offering 12.20 euros per share for a 100 percent stake in the solar and wind power utility company, Saeta said on Wednesday. The bid is a premium of 20 percent to Saeta’s closing share price before reports of a takeover bid in January.

TerraForm sees the deal as an opportunity to improve its presence in Western Europe and increase its asset portfolio by 40 percent, the company said.

Saeta’s main shareholders, Spanish construction company ACS, headed by Real Madrid Chairman Florentino Perez, and U.S. fund Global Infrastructure Partners, which both hold 24 percent stakes, have agreed to sell their holdings.

TerraForm said the deal would be financed with a US$400 million equity offering backed by Brookfield. The Canadian alternative asset manager owns a 51 percent stake in TerraForm.

Saeta operates solar thermal plants in Spain and wind farms in Spain, Uruguay and Portugal. Last year, its installed capacity surpassed 1 gigawatts (GW).

Saeta’s shares have gained 25 percent since the beginning of the year, and were 6.2 percent higher at 1030 GMT.

Update: Brookfield acquired TerraForm Power last year for US$$656 million. TerraForm was previously a unit of U.S. solar company SunEdison Inc, which filed for Chapter 11 bankruptcy protection in 2016.

At the time of the deal’s close, Brookfield said TerraForm would be the Toronto-based investor’s primarily vehicle for acquisitions of operating solar and wind assets in North America and Western Europe.

(Reporting by Katarzyna Zajaczkowska; Editing by Jason Neely and Mark Potter)

(This story has been edited by Kirk Falconer, editor of PE Hub Canada)

Photo courtesy of Alberto Masnovo/iStock/Getty Images

Do you want exclusive news and analysis about private equity deals, fundraising, top-quartile managers and more? Get your FREE trial to Buyouts! Or subscribe now!