SunEdison Inc‘s (SUNEQ.PK) unit TerraForm Power Inc (TERP.O) said it had adopted a shareholders rights plan to prevent any sale of a significant number of Class A shares in the company.
Canada’s Brookfield Asset Management Inc and U.S. hedge fund Appaloosa Management LP plan to jointly bid for SunEdison’s stake in TerraForm Power, according to a regulatory filing on Friday.
TerraForm Power shares rose 6.7 percent to US$13.34 in light pre-market trading on Monday.
All Class B shares of TerraForm Power are owned by SunEdison, while its Class A shares are held by the public investors, private investors and the company’s executives.
TerraForm Power had 80 million Class A shares and 60.4 million Class B shares outstanding as of October 31, 2015.
Separately, SunEdison said it was working with TerraForm Power and its other yieldco, TerraForm Global Inc (GLBL.O), to explore “value creation options” for their Class B shares it holds.
The rights plan, popularly known as “poison pill”, will be triggered if a party takes 15 percent ownership of TerraForm Power.
Brookfield and Appaloosa own 12.13 percent and 9.54 percent of TerraForm Power’s class A shares, respectively, according to a filing.
(Reporting by Arathy S Nair and Amrutha Gayathri in Bengaluru; Editing by Kirti Pandey)
(This story has been edited by Kirk Falconer, editor of PE Hub Canada)
Photo courtesy of Reuters/Noah Berger