(Bloomberg) – In 2017, Brookfield Asset Management Inc. had only half a megawatt of solar power. By the end of this year, the company may have a total of approximately 2,000 megawatts in total.
Its unit, Brookfield Renewable Partners LP, said Monday that it intends to share TerraForm Power Inc.. Buying them already in a deal that gives value to TerraForm is about $ 3.9 billion. The unwanted bid comes more than two years after Brookfield rescued TerraForm from SunEdison Inc., a clean energy company that has fallen out, by buying a 61.5% controlled part.
Brookfield's unsolicited offer is part of a long-standing effort to diversify its portfolio and recycle capital by selling mature assets and acquiring new ones. The company is a long standing hydropower player, with a capacity of about 7,900 megawatts. Recent M&A activity has increased its wind and solar exposure.
In the third quarter of last year, Brookfield agreed a 200 megawatt wind farm in China for $ 100 million with its partners. In July, he agreed to get 50% sum in X-Elio, a global solar developer. Meanwhile, its shares increased by about 80% last year, making it one of the best performers among North American renewable companies.
“It is a function of‘ that we think we can run a stronger company by simplifying the structure? ”Yes, absolutely,” said Sachin Shah, chief executive officer of Brookfield Renewables, in a Monday interview.
Colin Rusch, an analyst at Oppenheimer & Co., said in a note Monday that he sees “high probability” that the deal takes place. TerraForm shares rose 10% to $ 17.16 in New York's trading Monday and Brookfield fell 4.2% to $ 46.05.
Brookfield Renewable is a “best developer of a long-term renewable power class and a light buyer of disturbed assets,” said Andrew Kuske, an analyst with Credit Suisse Group AG, in a research note.
– With the help of Natalia Kniazhevich and Scott Deveau.
To contact the reporter on this story: Brian Eckhouse in New York at [email protected]
To contact the editors responsible for this story: Lynn Doan at [email protected], Reg Gale, Joe Ryan
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