SunEdison Scraps Deal To Buy Renova Stake; Backlog Agreement Also Terminated

(RTTNews) - SunEdison Inc. (SUNE) said it has terminated the securities purchase agreement with Light S.A. to acquire an about 16 percent stake in Brazilian renewable-source power generation company Renova for $250 million.

On December 1, 2015, SunEdison terminated this agreement as a result of certain conditions precedent to closing not being satisfied.

In addition, the $4 billion backlog agreement among SunEdison and TerraForm Global, Inc. (GLBL) and Renova Energia S.A., which provided for the acquisition of certain development-stage projects that were intended for a subsequent sale by SunEdison to TerraForm Global as call rights projects under the sponsor support agreement was also terminated.

However, the previously announced fifty-fifty joint venture between Renova and SunEdison to develop, own, and operate 1 gigawatt of utility scale solar photovoltaic projects to supply the Brazilian Regulated Electricity Market remains.

Brian Wuebbels, SunEdison's chief financial officer and TerraForm Global's chief executive officer said, "While it is disappointing that the agreement was terminated, we remain committed to Brazil. In addition, Renova remains a valued partner and we look forward to continuing our relationship with them on our solar development joint venture."