It’s been a long courtship, but on Monday TerraForm Power announced that following its shareholder vote Brookfield Asset Management is now its majority owner and sponsor, replacing the bankrupt SunEdison.
The process was not without its share of complications, including a messy web of legal claims and counter-claims between TerraForm and its former sponsor. With that out of the way, TerraForm is now targeting an annual dividend growth of 5% to 8%, based on both its 2.6 GW of operational wind and solar assets and a 3.5 GW pipeline of projects on which it has the right of first offer.
Brookfield now owns 51% of TERP shares. Existing Class A shareholders were offered a payout of $9.52 per share or a share in the post-merger company. 63% opted for the stock, resulting in over-subscription.
Along with the close of the merger, Brookfield Managing Partner John Stinebaugh will take over as CEO from interim CEO Peter Blackmore, whose stately English accent will be missed on quarterly results calls. Matthew Berger, also from Brookfield, will take over the chief financial officer position from Rebecca Cranna.
In language that is unusual for press releases, TerraForm Power states that Cranna was also “removed” from her position as executive vice president.
The conclusion of the TerraForm Power acquisition coincides with fellow SunEdison yieldco TerraForm Global finally setting a date for a vote of shareholders on November 13. If shareholders signal their approval, Brookfield will also take over TerraForm Global, and its 919 MW of wind and solar plants in Brazil, China, India and four other nations.