SunEdison unit TerraForm Power adopts poison pill (updated)

AlTi Global

25/07/2016 12:36

(Adds details, background) 
    July 25 (Reuters) - SunEdison Inc's  SUNEQ.PK  unit 
TerraForm Power Inc  TERP.O  said it had adopted a shareholders 
rights plan to prevent any sale of a significant number of Class 
A shares in the company. 
    Brookfield Asset Management Inc and hedge fund Appaloosa 
plan to jointly bid for SunEdison's stake in TerraForm Power, 
according to a regulatory filing on Friday. (http://bit.ly/2a5w44D) 
    TerraForm Power shares rose 6.7 percent to $13.34 in light 
premarket trading on Monday.  
    All Class B shares of TerraForm Power are owned by 
SunEdison, while its Class A shares are held by the public, 
private investors and the company's executives. 
    TerraForm Power had 80 million Class A shares and 60.4 
million Class B shares outstanding as of Oct. 31, 2015. 
    The rights plan is also aimed at fending off Brookfield 
Asset Management's accumulation of its Class A shares, TerraForm 
Power said in a statement on Monday.  urn:newsml:reuters.com:*:nGNXMYMBFa 
    Separately, SunEdison said it was working with TerraForm 
Power and its other yieldco, TerraForm Global Inc  GLBL.O , to 
explore "value creation options" for their Class B shares it 
holds.  urn:newsml:reuters.com:*:nPn7VtKJqa 
    The rights plan, popularly known as "poison pill", will be 
triggered if a party takes 15 percent ownership of TerraForm 
Power. 
    Brookfield Asset Management and Appaloosa own 12.13 percent 
and 9.54 percent of TerraForm Power's class A shares, 
respectively, according to a filing. 
 
 (Reporting by Arathy S Nair and Amrutha Gayathri in Bengaluru; 
Editing by Kirti Pandey) 
 ((arathys.nair@thomsonreuters.com;  within U.S. +1 646 223 
8780, outside U.S. +91 80 6749 3863; Reuters Messaging: 
arathys.nair.thomsonreuters.com@reuters.net)) 
 
Keywords: TERRAFORM POWER POISONPILL/