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SunEdison yieldcos negotiating exclusively with Brookfield

TerraForm Power Inc. and TerraForm Global Inc., holding companies affiliated with bankrupt renewable energy developer SunEdison Inc., are negotiating exclusively with Brookfield Asset Management Inc. over a potential acquisition, according to regulatory filings.

The yieldcos represent SunEdison's most valuable assets, and Brookfield, which has been pursuing the companies for months, outlined four potential deals in a Jan. 9 SEC filing, including offers to buy both companies or to replace SunEdison as their development sponsor.

The exclusivity agreements between Brookfield, TerraForm Power and TerraForm Global are scheduled to expire Feb. 21 and March 6, respectively. Meanwhile, the TerraForm companies signed memorandums of understanding with SunEdison that are aimed at resolving claims between the companies. The MOUs call for the companies to enter final settlement agreements by Jan. 27 and for any acquisition agreements to be approved by SunEdison and the yieldcos by April 1.

In addition to the proposals Brookfield outlined Jan. 9, the asset manager made an oral proposal that valued TerraForm Power at $12 per share; in the written proposals, Brookfield offered $11.50 per TerraForm Power share. The oral proposal is contingent on Brookfield also buying all of TerraForm Global or half of the company in a partnership transaction.

TerraForm Power shares were up slightly at $12.18 in morning trading Jan. 23.

The value of SunEdison's approximately 35% equity stake in the two project holding companies has been estimated at about $856 million.