TerraForm Power Inc. said June 5 that the acceptance period for its tender offer to acquire European renewable business Saeta Yield SA has ended, with the deal expected to close within the following week.
TerraForm Power said in a news release that the transaction, which was sourced by its sponsor, Brookfield Asset Management Inc., is expected to be highly accretive to shareholders with returns on equity in excess of TerraForm Power's target.
In February, TerraForm Power offered to acquire the Spain-headquartered Saeta for €12.20 in cash per share. If it acquires all of the remaining Saeta shares, the total purchase price will be approximately $1.2 billion.
Saeta owns approximately 1,028 MW of contracted assets, primarily in Spain, including 778 MW of onshore wind and 250 MW of solar.
Additionally, TerraForm Power said it will issue $650 million of its class A shares at the back-stop price of $10.66 each to Brookfield or its affiliates to maintain its current ownership stake. After the close of the private placement by June 11, Brookfield's stake in the company will increase to approximately 65%.
The proceeds will be used to fund the Saeta transaction along with previously disclosed funding options.
TerraForm Power owns and operates a 2,600-MW portfolio of wind and solar power assets located primarily in the U.S.
