8point3 Energy Partners, the yieldco set up in 2015 by First Solar and SunPower, has entered into a Plan of Merger and Purchase Agreement with CD Clean Energy and Infrastructure V JV, LLC, an investment fund managed by Capital Dynamics, in a deal expected to represent about $977 million in equity value and about $1.7 billion in enterprise value.
8point3 Energy Partners was set up back in the first half of 2015 through a joint venture between US solar companies First Solar and SunPower during the height of “yieldco-season” when every man and his dog was forming a yieldco to manage and operate renewable energy projects.
Earlier this week, the two companies announced that their yieldco had entered into an Agreement and Plan of Merger and Purchase Agreement with CD Clean Energy and Infrastructure V JV, LLC, an investment fund managed by Capital Dynamics, along with certain other co-investors, through which Capital Dynamics will acquire all outstanding common and subordinated shares at $12.35 per share.
The proposed transactions are expected to be worth around $977 million in equity value and around $1.7 billion in enterprise value.
The $12.35 price per share significantly undercut where the company had been trading before the announcement, but since then, unsurprisingly, 8point3’s shares dropped 12% as investors sought to get what they could from their investments.
The acquisition is expected to close in the second or third quarter of 2018 and comes after a marketing process which included more than 130 parties, and non-disclosure agreements with 30 of those. Closure of the agreement is subject to “approval by a majority of the outstanding 8point3 public Class A shareholders” as well as other conditions, as is normal in these circumstances.