Canadian outfit Brookfield Renewable Partners has made a non-binding offer to acquire the outstanding shares that the company and its affiliates do not already own in TerraForm Power.
The shares amount to 38% of TerraForm Power, with the remaining 62% already owned by Brookfield and affiliates.
The proposal values TerraForm Power at $17.31 a share, representing an 11% premium to the closing share price on 10 January.
Brookfield said the proposed transaction would strengthen its position in the renewable energy sector.
Brookfield Renewable chief executive Sachin Shah said: “We believe this transaction will create significant value for investors in both companies through a simplified corporate structure and continued sponsorship from Brookfield Asset Management.
“For Brookfield Renewable unit-holders, this transaction is expected to be immediately accretive and further expands our portfolio in North America and Western Europe, all while delivering returns in-line with our targets.
“TerraForm Power shareholders, in turn, will benefit from access to a broader growth mandate that includes global, multi-technology and development opportunities, and increased access to capital and liquidity, underpinned by an investment grade balance sheet.”
TerraForm Power owns and operates over 4GW of solar and wind assets mainly in the US and EU.