PEGI - Yieldco Exodus Continues as Pattern Energy Takes $6.1 Billion Buyout
Public investor expectations for earnings and dividend growth have led to a clash between stock markets and renewable energy yieldcos. Companies like 8point3 Energy Partners, TerraForm Power, and NRG Yield didn't perform well, acting more like bonds than investors in public stocks typically expect, and were eventually sold to investors that hold similar assets.
Pattern Energy (NASDAQ: PEGI) is the latest yieldco to look for private alternatives, and has found a good suitor for its assets: The Canada Pension Plan Investment Board (CPPIB) is buying the company for $6.1 billion, or $26.75 per share, in one of the industry's biggest buyouts ever. The deal may be a new blueprint for how renewable energy stocks and assets should be financed.
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