- Brookfield Renewable Partners (TSX:BEP.UN) has received shareholder approval to merge with Terraform Power
- Shareholders of Terraform stock will receive 0.476235 of a share in the newly-formed Brookfield Renewable Corporation in exchange for each previously held share
- Brookfield currently holds a 62 per cent stake Terraform power and will purchase the remaining interest during the transaction
- The merger is expected to close by the end of this month, with the new shares trading on the TSX and the Nasdaq under the ticker code BEPC
- Brookfield Renewable Partners (BEP.UN) is up 1.4 per cent and is trading at C$70.98 per share
Brookfield Renewable Partners (TSX:BEP.UN) has received shareholder approval to merge with Terraform Power.
The shareholders of Terraform Power have voted to approve the merger, whereby Brookfield will acquire all of the outstanding shares in Terraform, outside of the 62 per cent it and affiliates already own.
In exchange, shareholders will receive 0.476235 of a share in the newly formed Brookfield Renewable Corporation for each previously share.
Brookfield expects to issue 37 million shares in the new company to the former holders of Terraform stock. When added to the stock already issued in the Brookfield Renewable Corporation, the new entity will have a share float of 114 million.
As part of the merger, owners of Brookfield Renewable Partners stock will receive one Brookfield Renewable Corporation share for every four units of stock they currently own.
The merger will create what Brookfield is calling one of the largest, integrated renewable power companies in the world, with 15,000 megawatts of power production in the pipeline.
The merger is expected to close by the end of this month, with the new shares to begin trading on the TSX and the Nasdaq under the ticker code BEPC.
Sachin Shah, the CEO of Brookfield Renewable Partners said he was looking forward to the completing the merger.
“The transaction is immediately cash accretive and further enhances Brookfield Renewable’s position as one of the largest, publicly traded pure-play renewable power businesses globally.
“We are also excited to be launching Brookfield Renewable Corporation, which provides investors greater flexibility to invest in our business,” he said.
Brookfield Renewable Partners (BEP.UN) is up 1.4 per cent and is trading at C$70.98 per share at 12:45 pm EDT.