Brookfield Asset Management may have to increase its proposed takeover bid for Sunedison Inc (OTCMKTS:SUNEQ)’s Yieldco, TerraForm Power Inc (NASDAQ:TERP), if it is to have a chance of closing any deal. Shareholders may reject its initial offer of $13 a share, given that TerraForm stock has already surged above the $13 a share mark in the market.
TerraForm Power Inc Sell Off Talk
The Firm’s offer values the Yieldco at $1.8 billion. Brookfield, which is aggressively pushing for ideal, has also hinted at the possibility of placing an offer for the other Yieldco TerraForm Global Inc (NASDAQ:GLBL), which is also on sale. The firm’s main play with the acquisition is to act as an interim sponsor.
TerraForm Power Inc is aggressively looking for ways to entangle itself from SunEdison, which faces an uncertain future having filed for bankruptcy protection early in the year. However, its effort to push for a deal from the asset management firm may fall to nothing as investors await an improved offer from other interested parties.
The Yieldco needs to seal a deal as soon as possible given that its market cap has slumped ever since SunEdison saw its fortunes turn sour after a $2.6 billion buying spree. In a bid to ramp up support for a potential takeover Brookfield CEO, Sachin Shah, has urged the two Yieldcos to accept the current offer before their market value tanks even further from the current levels.
“We firmly believe these proposals represent unique, extremely attractive opportunities for TERP and GLBL shareholders, as well as the creditors of SunEdison,” said Mr. Shah.
SunEdison Unending Woes
Amidst the ongoing standoff, SunEdison has gone forth to place its Canadian arm into bankruptcy protection. The company is seeking additional time to sell its most price assets as it looks to raise money to repay its debt.
Up to date, Sunedison Inc (OTCMKTS:SUNEQ) has completed the sale of 19 assets all of which have brought in about $609 million. Most of its current value is tied to the two Yieldcos that are separate public traded companies