SunEdison has terminated the securities purchase agreement with Light Energia to acquire a 16% stake in Brazilian company Renova Energia for $250m.
However, a previously announced 50:50 joint venture between Renova and SunEdison to develop, own, and operate 1GW of utility scale solar photovoltaic projects to supply the Brazilian Regulated Electricity Market remains.
On July 15, 2015, SunEdison entered into a securities purchase agreement with Light Energia in which SunEdison agreed to acquire all of Light Energia’s approximately 16% ownership interest in Renova for $250m.
The purchase price was payable in shares of SunEdison common stock. On 1 December, SunEdison terminated this agreement as a result of “certain conditions precedent to closing not being satisfied”.
TerraForm Global, part of SunEdison, entered into the so-called backlog agreement to acquire certain development-stage projects from Renova between 2016 and 2020 provided significant conditions and contingencies were met.
TerraForm Global subsequently assigned its rights and obligations under the backlog agreement to SunEdison. The agreement covered 12 wind and hydro projects in Brazil, which represented an aggregate capacity of approximately 2.7GW.
SunEdison said these projects were in various stages of planning and development, and the “commitment was subject to significant conditions, along with satisfactory due diligence, regulatory approvals and certain third party consents, and each project was to also meet certain technical and operational requirements”.
The projects were intended for a subsequent sale by SunEdison to TerraForm Global, as call rights projects. The backlog agreement and subsequent call rights were also ended on 1 December.
SunEdison chief financial officer and TerraForm Global chief executive officer Brian Wuebbels said: “While it is disappointing that the agreement was terminated, we remain committed to Brazil.
“In addition, Renova remains a valued partner and we look forward to continuing our relationship with them on our solar development joint venture.”
Image: Alto Sertao wind farm Brazil (Renova)
