Terraform Makes $1.2 Billion Bid for Renewables Company Saeta

02/07/18 07:04 AM EST

By Alberto Delclaux


Terraform Power Inc. (TERP) said Wednesday that it launched an all-cash takeover offer for renewable energy company Saeta Yield SA (SAY.MC), valuing it at 995 million euros ($1.23 billion).

The offer is supported by shareholders that together own more than a 50% interest in Saeta, Terraform said, including Spanish construction group Actividades de Construccion y Servicios SA (ACS.MC) and U.S. fund Global Infrastructure Partners LLC, which each hold a 24% stake in Saeta.

Terraform, which is controlled by Canadian fund Brookfield Asset Management (BAM), said it was offering EUR12.20 per share for all outstanding shares and that it will finance part of the transaction with a $400 million equity offering supported by Brookfield.

"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," said Terraform Chief Executive John Stinebaugh.

Saeta owns and operates 1,028 megawatts of rate-regulated solar and wind assets, mainly in Spain, according to Terraform.

Terraform expects the deal to close in the second quarter.

Saeta's shares jumped 6.4% in morning trading to EUR12.30, slightly over the offering price.


Write to Alberto Delclaux at alberto.delclaux@dowjones.com


(END) Dow Jones Newswires

February 07, 2018 07:04 ET (12:04 GMT)

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