Tag: Merger

Geothermal Tie-up

Ormat Technologies (ORA:  NYSE) is buying U.S. Geothermal (HTM:  NYSE) for $5.45 per share in cash.   The offer represents a 29% premium to the HTM closing price the day prior to the announcement.  The shares had been in a steady decline over the past several months, hitting a 52-week low of $3.11 earlier in January 2018.  So while the offer price pales in comparison to the U.S. Geothermal’s all-time high stock price of $28.68 way back in October 2007, shareholders may be feeling a warm breeze coming off Ormat’s cash. Should Ormat shareholders be as thrilled as the company ponies up $110 million...

Brookfield’s Yieldco Buying Spree

by Tom Konrad Ph.D., CFA Last week, a Bloomberg reported on a rumor that Brookfield Asset Management (BAM) was in talks to buy Abengoa's (ABGOY) stake in its former YieldCo Atlantica Yield (ABY).  Atlantica had been looking for a new sponsor for well over a year since parent Abengoa filed for bankruptcy. Purchasing Yieldcos (companies that own clean energy infrastructure and use the cash flows to pay large dividends to shareholders) is not new to Brookfield.  Not only has BAM long sponsored Brookfield Renewable Partners, LP (BEP), a limited partnership that has essentially been a Yieldco since before the term was...