The voluntary tender offer is part of TerraForm’s strategy to expand its presence in Western Europe and add more wind and solar generation assets.
TerraForm Power CEO John Stinebaugh said: “With the Saeta acquisition, we are excited to significantly grow our portfolio of high-quality wind and solar assets and expand our geographic footprint with a scale position in Western Europe.
“With Brookfield as our sponsor, we believe this transaction demonstrates our ability to originate acquisitions of high-quality assets on a value basis that are highly accretive to our shareholders.”
TerraForm has offered EUR12.20 ($15.06) in cash per share to acquire 100% of the outstanding shares in Spanish wind and solar power group.
Saeta’s portfolio of recently built renewable energy assets includes 778MW of onshore wind projects and 250MW of concentrated solar projects.
These projects, which are mainly located in Western Europe, have an average age of six years and a remaining useful life of more than 25 years.
TerraForm says that 100% of Saeta’s revenues come from stable frameworks with investment grade counterparties, with more than 80% of its earnings being regulated under the Spanish renewable power regime.
The firm plans to finance the deal with a $400m equity offering, fully backstopped by Brookfield, while the balance will be funded from available liquidity.
Subject to certain closing conditions including obtaining regulatory approvals, the tender is planned to be completed in the second quarter of 2018.
Currently, TerraForm Power owns and operates a renewable portfolio of solar and wind assets located primarily in the US, with a total installed capacity of more than 2,600MW.
