BETHESDA, MD — TerraForm Global Inc., a subsidiary of bankrupt solar company SunEdison Inc., reported net income of $6 million in its second quarter on Tuesday, beating estimates as talks of a takeover by Canada’s largest alternative asset manager continue.
The company was expected to report a loss in the quarter, according to the consensus analyst estimate.
As the biggest clean energy company in the world with assets spread across six continents, an overextended SunEdison filed the biggest U.S. bankruptcy of 2016.
Bethesda, Maryland-based TerraForm Global and its sister TerraForm Power were designed to buy and own SunEdison’s completed power plants, and their portfolios of wind and solar farms are among the most coveted assets as SunEdison’s creditors and other buyers assess the company’s value, according to Bloomberg.
Brookfield Asset Management offered $12 a share for TerraForm Power, conditional on acquiring more than half of sister company TerraForm Global, according to a regulatory filing on Jan. 21. That’s lower than TerraForm Power’s closing price of $12.17 the day before.
Toronto-based Brookfield’s bid was lower than where the stock trades because the company doesn’t want to take on the risk that comes with buying a firm such as TerraForm with a relatively high debt cost without sufficient upside to compensate for that risk.
TerraForm Power, owner and operator of wind and solar clean energy power plants in the U.S. and the U.K., has a market capitalization of $1.66 billion.
Its shares closed Tuesday at $11.87, up 2.59 percent. TerraForm Power’s 2016 high was $14.48 on Sept. 23 with a low of $7.86 on June 17.
TerraForm Global generates power in emerging markets including Brazil, India and China. Its shares closed Tuesday at $4.40, up 1.15 percent. The company’s 2016 high was $4.54 on Jan. 8 with a low of $2.54 on Feb. 26.
TerraForm Global said it expects to file its third quarter 2016 earnings by the March 2017 Nasdaq deadline. The company said it does not expect to have the time or resources to file its yearly earnings for 2016 by the March 2017 SEC deadline or its first quarter 2017 earnings by the May 2017 deadline.
TerraForm Global’s filing for the quarter ended June 30, 2016, can be found here.
This story is from the Maryland Business News Wire, a service of UNC-Chapel Hill’s School of Media and Journalism