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TerraForm Power launches $1.2bn takeover bid for Saeta Yield

CTBR Staff Writer Published 08 February 2018

TerraForm Power has launched a bid to acquire Spanish renewable assets operator Saeta Yeild in a deal worth $1.2bn.

TerraForm claims to have secured commitments from Saeta’s shareholders who together own 50% of the company’s shares, to tender their shares for the offer.

Saeta’s portfolio of recently built renewable energy assets are mainly located in Western Europe, including 778MW of onshore wind and 250MW of concentrated solar. These assets are claimed to have an average of age of six years and a remaining useful life of more than 25 years.

As per the offer, TerraForm Power will pay €12.20 in cash per share to Saeta’s shareholders.

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.

Subject to closing conditions and regulatory approvals, the acquisition is expected for completion in the second quarter of this year. 

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.”

The company plans to finance the transaction with a $400m equity offering, fully backstopped by Brookfield, and the remaining from available liquidity. 

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. 

Image: Wind turbines and solar panels. Photo: Courtesy of kongsky/FreeDigitalPhotos.net.