TerraForm Power Inc. on June 11 issued 60,975,609 class A common shares to affiliates of Brookfield Asset Management Inc. at $10.66 per share for total proceeds of $650 million to fund the acquisition of Saeta Yield SA.
In February, TerraForm Power offered to acquire Spain-headquartered Saeta for €12.20 in cash per share. Spain's National Securities Market Commission already confirmed a 95% acceptance of its tender offer to acquire all Saeta Yield shares. The closing date for the 95% stake is set for June 12.
If TerraForm acquires all of the remaining Saeta shares, the total purchase price will be approximately $1.2 billion. The company issued a cash tender offer to acquire all of Saeta Yield's outstanding shares that ended June 5.
Saeta owns approximately 1,028 MW of contracted assets, primarily in Spain, including 778 MW of onshore wind and 250 MW of solar. TerraForm Power owns and operates a 2,600-MW portfolio of wind and solar power assets located primarily in the U.S.
The common stock offering has increased Brookfield Asset Management's stake in TerraForm Power to 65% from 51%.
