Two of the largest solar energy companies in the world, First Solar and SunPower Corporation, are partnering up to form a joint yieldCo vehicle, according to a press release just sent to CleanTechnica.
The two companies are apparently still in the advanced stages of negotiations, so the deal isn’t set in stone yet, but given the fact that the two companies have actually already put a press release out, I’d guess that it’s pretty likely going to happen.
In the email sent to CleanTechnica, it was stated that both companies “expect to contribute a portfolio of selected solar generation assets from their existing portfolio of assets” — it’s not clear yet though what the proportion of the projects/assets (that will make up the joint yieldco) coming from each company will be.
Once a master formation agreement has been executed, the two companies will be filing a registration statement with the SEC (Securities and Exchange Commission) for an initial public offering (IPO) to limited partner interests.
Before the yieldco formation can be completed though, the boards of the two companies still have to approve whatever definitive documentation comes about via negotiations. And, of course, regulatory approval has to occur as well (which is very, very likely).
The recent email did include this addendum (worth noting, imo): “There is no assurance that the YieldCo will be formed or that the IPO will be consummated or that any other transaction will occur.”
This move follows on the heels of news that the multinational electricity distributer + manufacturer Enel is reportedly just weeks away from unveiling its US renewable energy assets yieldco. The yieldco will reportedly not be listed publicly, though, as publicly traded entities are “monsters that you have to feed,” according to Enel’s CEO Francesco Starace.
Image Credit: First Solar