SunEdison’s TerraForm Chooses a Poison Pill Option in Its Looming Shareholder Battle
SunEdison’s unit TerraForm Power 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 and hedge fund Appaloosa plan to jointly bid for SunEdison’s stake in TerraForm Power, according to a regulatory filing on Friday.
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.
Separately, SunEdison said it was working with TerraForm Power and its other yieldco, TerraForm Global, to explore “value creation options” for their Class B shares it holds.
The rights plan, popularly known as “poison pill”, will be triggered if a party takes 15% ownership of TerraForm Power.
Brookfield Asset Management and Appaloosa own 12.13% and 9.54% of TerraForm Power’s class A shares, respectively, according to a filing.