News Archive


SunEdison unit TerraForm Power adopts poison pill

Posted by: Admin | Posted on: July 25th, 2016 | 0 Comments


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.

Brookfield Asset Management Inc and hedge fund Appaloosa plan to jointly bid for SunEdison’s stake in TerraForm Power, according to a regulatory filing on Friday. (bit.ly/2a5w44D)

TerraForm Power shares rose 6.7 percent to $13.34 in light premarket trading on Monday.

All Class B shares of TerraForm Power are owned by SunEdison, while its Class A shares are held by the public, 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 Oct. 31, 2015.

The rights plan is also aimed at fending off Brookfield Asset Management’s accumulation of its Class A shares, TerraForm Power said in a statement on Monday.

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 Asset Management 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)

Article source: http://feeds.reuters.com/~r/reuters/businessNews/~3/_7JoToLiK6c/us-terraform-power-poisonpill-idUSKCN10516Y

Comments are closed.