In recent after-hours trading, TerraForm shares jumped 3.5% to $38.86, whereas rise of 3.8% to $30.05 was witnessed in shares of SunEdison.
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TerraForm Power Inc., a company formed by SunEdison Inc.to own and operate power plants, agreed to buy 930 megawatts of wind-power capacity from Invenergy Wind LLC for $2 billion.
The acquisition includes seven contracted wind farms in the USA and Canada totalling 930MW. A 9.9% stake in the United States assets will be retained by Invenergy, which will also provide certain operations and maintenance services for those power plants.
The remaining 470 MW will be acquired by a new warehouse facility sponsored by SunEdison and third-party equity investors, with the assets dropping down to TerraForm in the future.
SunEdison and other renewable-energy developers such as NextEra Energy Inc. and NRG Energy Inc. have spun off groups of power plants, solar farms and wind farms into new companies, such as TerraForm, which sell power to utilities or other companies under long-term contracts and pay regular dividends to shareholders. Together with TerraForm Power, SunEdison’s development platform will change how energy is generated, distributed and owned around the world, ” he added.
The company expects to complete the transaction by the fourth-quarter fiscal 2015.
TerraForm has chose to acquire 460 MW of plants directly from Invenergy which is the biggest wind power generation firm in the United States.
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The 2016 share target of TerraForm was increased by TerraForm to $1.70 for each share from $1.53.The increased targets show a 26 percent upsurge from TerraForm’s 2015 yearly guidance stated by the firm.
