TerraForm Power, a US-based renewable energy subsidiary of Canadian financial giant Brookfield Asset Management, has announced that it has launched a $1.23bn takeover bid for Spanish company Saeta Yield.
The offer works out to be €12.20 per share for a 100% stake in Saeta Yield – a 20% premium on the firm’s unaffected share price.
As an owner and operator of 1,028MW of wind and solar assets, Saeta Yield will readily complement Terraform’s existing portfolio of 2,600MW in renewable power assets.
In this sense, the move is part of TerraForm’s attempt to expand its footprint in Western Europe, with a significant majority of Saeta Yield’s assets being located in Spain.
“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 John Stinebaugh, Chief Executive Officer of TerraForm Power.
“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.”