Here’s Why SunEdison’s Stock Is Jumping 30%
Renewable energy company SunEdison’s shares soared during Thursday trading following news that broke on a pair of deals.
Shareholders of Vivint Solar (VSLR) approved a proposed $1.9 billion sale to SunEdison (SUNE) on Thursday morning, according to Bloomberg. Meanwhile, according to a DigiTimes report, SunEdison has also formed a strategic partnership with China’s Jinneng Group, with the two companies opening a joint venture factory in Northern China for the purpose of developing high-powered silicon solar cells.
Shares of SunEdison were up more than 30% Thursday afternoon, at one point topping $1.70 per share after opening the day trading at $1.34 per share.
The company’s stock had fallen dramatically after starting the year at roughly $5 per share. SunEdison’s plans to acquire Vivint Solar have faced opposition from billionaire hedge fund manager David Tepper’s Appaloosa Management, which owns 9.5% of SunEdison subsidiary TerraForm Power.
Tepper is opposed to the Vivint Solar acquisition because he claims it isn’t in the interest of TerraForm, which would be required to take on debt in the deal. He sued SunEdison to stop the Vivint Solar deal earlier this year, and Bloomberg notes that a ruling in Delaware Chancery Court is expected soon.
Latin America Power also sued SunEdison for $150 million earlier this year after the latter walked away from a deal to acquire Latin America Power last fall. Meanwhile, Hawaiian Electric also recently canceled power purchase agreements after SunEdison missed multiple deadlines.