A day after SunEdison clarified that selling of assets has been its business practice globally in the wake of reports about the sale of some projects in India, the US-based renewable energy development company said it has entered into a pact with TerraForm Global, a globally diversified owner and operator of clean energy projects, to sell a series of projects located in India for the aggregate equity consideration of $ 231 million.
The projects will generate 425 megawatt of capacity in aggregate. A portion of the purchase price was paid on November 20 and the rest will be payable on or before December 7, 2016, unless otherwise agreed, SunEdison said in a statement. The company utilised a portion of the proceeds from the sale to partially pay down its margin loan. It did not specifically state which are the projects that have been sold.
“This transaction provides higher yields replacing lower-yielding IPO projects that were intended to be acquired through M&A and is consistent with our strategy to focus on organic growth provided by our sponsor,” said Brian Wuebbels, chief executive officer of TerraForm Global.
“We are pleased to be able to add these accretive assets with 20 year contracted cash flows to TerraForm Global’s portfolio and believe they are critical to achieving our 2016 dividend guidance.”
“This agreement is a win-win for both SunEdison and TerraForm Global shareholders,” commented Ahmad Chatila, president and CEO of SunEdison. “This transaction provides accretive dividend per share (DPS) to TerraForm Global shareholders.”
The transaction comes after the company scrapped a proposed deal to buy the India assets of Singapore-based Continuum Wind Energy, which owns 412.5 mw of wind energy projects.
Pashupathy Gopalan, SunEdison’s president of Asia-Pacific and Sub-Saharan Africa, had on Tuesday said that the company has been looking at various options including selling of the assets to raise capital as well as fund the future projects.