SunEdison Inc. took a major step forward in its bankruptcy reorganization, agreeing to relinquish control of its two yieldco units to Canada’s biggest alternative asset manager and clearing up some of the litigation brought by the affiliates, Bloomberg News reported yesterday. Brookfield Asset Management Inc. agreed to increase its stake in TerraForm Power Inc. to 51 percent, acquiring the additional shares at $11.46 each, according to a statement yesterday. That would give the yieldco a market value of $1.7 billion. The asset manager also will pay $787 million in cash and assume about $455 million in net debt to acquire sister yieldco TerraForm Global Inc. That values the two companies at a total of $2.94 billion, and Brookfield expects the transactions to close in the second half of this year. The transactions would help untangle SunEdison from two of its biggest affiliates that helped bring down the world’s biggest-renewable energy developer in April 2016. The complexity of SunEdison’s relationships with the yieldcos had raised corporate governance concerns and drew criticism from creditors. For Brookfield, it means acquiring a portfolio of clean power plants operating around the world, with long-term contracts to sell electricity.
