By Joshua Jamerson 

Canada's Brookfield Asset Management has reached an agreement to buy TerraForm Global Inc. and take a controlling stake in TerraForm Power Inc., a potentially large step forward in corporate parent SunEdison Inc.'s bankruptcy case.

Under two deals announced Tuesday, Brookfield will pay $787 million in cash to buy TerraForm Global and become the sponsor for TerraForm Power with 51% ownership of the company.

The investment firm in November floated the possibility of a takeover of TerraForm Global -- which owns projects in Brazil, China, India and emerging markets -- and TerraForm Power, which owned projects in the U.S., Canada, U.K. and Chile. Both companies are the so-called yieldcos that helped fuel the now-bankrupt SunEdison's boom.

Under the terms of the TerraForm Global deal announced Tuesday, Brookfield will purchase all of the outstanding Class A shares of TerraForm Global for $5.10 a share in cash. That is a 20% premium to TerraForm Global's stock price as of Monday's close. Brookfield said it was a roughly 50% premium to the closing price Sept. 16, the last trading day before TerraForm Global's announcement that it would explore strategic alternatives.

Brookfield said the TerraForm Global transaction, subject to a shareholder vote and regulatory approval, is expected to close in the second half of 2017. The deal is also subject to certain approvals from the U.S. bankruptcy court overseeing SunEdison's chapter 11 bankruptcy. SunEdison filed for bankruptcy protection in April.

Brookfield's plan to be a controlling shareholder of TerraForm Power also is expected to close in the second half of the year and is subject to similar conditions, such as certain approvals from the U.S. bankruptcy court.

Brookfield said that SunEdison supports the transactions and that the two transactions aren't subject to the completion of one another. A representative for SunEdison wasn't immediately available for comment.

Write to Joshua Jamerson at joshua.jamerson@wsj.com

(END) Dow Jones Newswires

March 07, 2017 08:17 ET (13:17 GMT)

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