SunEdison Cancels Deal to Buy Stake in Brazil Developer Renovaby
Acquisition of Chile developer was canceled in October
Renova stock deal would have been `massive' dillution
SunEdison Inc., the worst-performing solar company this year, canceled its $250 million deal to buy a 16 percent stake in the Brazilian renewable energy company Renova Energia SA, the second time in as many months it’s backed away from the South America market.
Light SA, owner of the Renova stake, and SunEdison had the option to terminate the deal until Nov. 30 without penalties, according to a filing in Brazil from Light Tuesday that cited “adverse market conditions. ”
SunEdison has lost 81 percent of its market value this year, the most on the 20-member Bloomberg Intelligence Global Large Solar Energy index. The company had planned to fund the Renova deal by issuing new shares, a plan that would have led to “massive” dilution, Credit Suisse analyst Patrick Jobin wrote in a research note Tuesday.
SunEdison terminated Oct. 7 its deal to acquire Chile’s Latin American Power. The Santiago-based developer has 119 megawatts of hydroelectric and wind-energy plants operating in Peru and Chile, and is building wind and hydroelectric projects in Chile with another 214 megawatts.
A SunEdison spokesman didn’t immediately reply to phone calls and e-mails seeking comment Tuesday.