Vivint Solar terminates $2.2-bn takeover by SunEdison

09 Mar 2016

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Vivint Solar Inc, a provider of residential solar systems in the US, today said that it had terminated the $2.2 billion takeover by solar energy company SunEdison Inc after SunEdison failed to "consummate" the deal.

In July last year, SunEdison, the world's largest renewable energy development company, offered to buy Vivint Solar for a total of $16.50 per share, consisting of $9.89 per share in cash, $3.31 per share in SunEdison stock, and $3.30 per share in SunEdison convertible notes.

SunEdison and Vivint later renegotiated the deal, reducing the cash portion by $2 to $7.89 a share.

Private equity firm Blackstone Group, majority shareholder of Vivint, agreed to take stock in lieu of cash and agreed to provide SunEdison with a $250 million credit line.

The Vivint - SunEdison deal was set to expire on 18 March and SunEdison will have to pay breakup fee of $34 million.

Vivint said it plans to "seek all legal remedies available" as a result of the "willful breach" of the merger agreement by SunEdison.

SunEdison, whose market value has fallen from nearly $10 billion to about $600 million, has long-term debt of $9.77 billion as of 30 September.

The California-based company early this month said that it would delay filing its annual report due to an internal investigation into its financial position.

Due to this Barclays, Citigroup, Goldman Sachs and UBS refused to provide loans that they had committed to the takeover.

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