Brookfield to buy TerraForm Global, 51 pct of TerraForm Power

Brookfield Renewable Partners LP would buy 100 per cent of TerraForm Global and 51 per cent of TerraForm Power, which would remain a Nasdaq-listed company under a plan announced Tuesday by the three companies. JPMorgan Chase & Co. reaffirmed a "neutral" rating on shares of TerraForm Global in a research note on Friday, January 13th. Four equities research analysts have rated the stock with a hold rating, one has issued a buy rating and one has issued a strong buy rating to the company. TerraForm Global has a consensus rating of "Buy" and a consensus target price of $5.38. Brookfield needs to own 51% of the company post-transaction so if everyone chooses to get shares rather than the full cash buyout, the deal will be prorated to a level where more cash is paid out and Brookfield still owns 51% of the stock. In fact, SunEdison has reached settlement agreements with TerraForm Global and TerraForm Power that contain certain terms to resolve the complex legal relationship between the yieldcos and SunEdison. The 52-week range of the stock is $1.92 to $4.95. AQR Capital Management LLC purchased a new stake in shares of TerraForm Global during the fourth quarter valued at about $124,000. Rhumbline Advisers now owns 66,923 shares of the company's stock worth $218,000 after buying an additional 15,253 shares in the last quarter. Numeric Investors LLC increased its position in shares of TerraForm Global by 686.0% in the fourth quarter.

The stock's price switched up -4.55% 20-Days Simple Moving Average, added 0.35% from 50-Days Simple Moving Average and rose 16.23% from 200 Days Simple Moving Average.

Hedge funds and other institutional investors have recently made changes to their positions in the stock.

Complicating matters is that the deal is subject to proration, meaning investors may not get as many shares as they expect if they want to hold onto the stock. Wells Fargo & Company MN now owns 45,408 shares of the company's stock valued at $187,000 after buying an additional 25,004 shares during the last quarter. Finally, BlackRock Institutional Trust Company N.A. raised its position in shares of TerraForm Global by 32.6% in the second quarter.

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Morgan Stanley, Centerview Partners and AlixPartners were financial advisers to TerraForm Power, while Greentech Capital Advisors, Centerview Partners, and AlixPartners advised TerraForm Global.

The Brookfield group of companies is poised to expand its solar and wind power holdings through a pair of deals to acquire control of TerraForm Power and TerraForm Global. The Company's segments include Solar, Wind and Corporate. The Company owns and operates clean energy power plants.

TerraForm Power has 2,983 megawatts of electricity generating capacity, primarily wind and solar operations in the United States.

  • Zachary Reyes