TerraFormPower Inc. has adopted a stockholder protection rights plan to fendoff a potential hostile takeover of the company.
The move came in response to 's sale of a significant equitystake in TerraForm Power and the announcedaccumulation of TerraForm Power class A shares by and Appaloosa Management LP.
SunEdison owns 35% of the economic interest and 84% of thevoting interest in TerraForm Power. Brookfield Asset Management and AppaloosaManagement combined own 21.67% of TerraForm Power's class A common shares.
TerraForm Power's board "believes it is in the bestinterests of all TerraForm Power stockholders for acquisition proposals for allor a portion of the TerraForm Power equity interests to be able to emerge in anenvironment free of a blocking position accumulated by possible bidders,"TerraForm Power Chairman and interim CEO Peter Blackmore said in a statement.
The yieldco also declared a dividend of 1 right per class Acommon share to holders of record Aug. 4.
Separately, SunEdison said it is exploring possiblemonetization of its controlling class B stake in TerraForm Power and ,a move that marks the latest step in the company's Chapter 11 process.
SunEdison will undertake the initiative in collaborationwith its yieldcos, the renewable energy developer said in a July 25 statement.