(PR Newswire) SunEdison, Inc., the world’s largest renewable energy development company, announced that it has signed a definitive agreement to acquire 100% of Globeleq Mesoamerica Energy (GME), Central America’s leading renewable energy company.
SunEdison will acquire a 70 percent interest in GME from Actis, a global pan-emerging market private equity investor focused on the energy sector, and a 30 percent interest from Mesoamerica Power Limited. The acquisition will solidify SunEdison’s position as the largest renewable energy developer in Central America as it expands its presence in the global renewable energy market.
Through the acquisition, SunEdison will acquire GME’s development and asset management platform: a portfolio consisting of four operating wind power plants with a capacity of 243 megawatts (MW) AC, and a solar power plant with a capacity of 82 MW DC located in Costa Rica, Honduras and Nicaragua; 80 MW AC of wind farms entering construction in Costa Rica; and a pipeline of 246 MW AC of wind under development in various countries across Central America.
“The acquisition of GME strengthens SunEdison’s leadership position in the global wind energy market and significantly expands our presence in Central America, a region that offers growth opportunities for our emerging markets development platform,” said Ahmad Chatila, SunEdison president and chief executive officer. “With this acquisition we not only gain an experienced and talented management team with a proven track record in the region, but also position ourselves to accelerate our performance and deliver attractive returns to our shareholders.”
“We’re very excited to join the SunEdison team. SunEdison’s world class development and global financial capabilities will enable us to aggressively grow our business,” said Jay Gallegos, GME chief executive officer. “Both companies have a strong track record of partnering with local communities to stimulate strong economic development and create new jobs, so we’re confident that our growth will be sustainable over the long term.”
All of the operational and construction assets are contracted under long term U.S. dollar-denominated power purchase agreements (PPAs) with local utilities or suppliers. Assets in Honduras and Nicaragua have been insured by the World Bank’s Multilateral Insurance Guarantee Agency (through Political Risk Insurance policies).
SunEdison intends to place the wind and solar power plants acquired from GME on the operational call rights list for TerraForm Global. Upon closing, Actis and Mesoamerica Power will become shareholders in TerraForm Global.
The definitive agreement was signed June 12, 2015 with closing expected in the third quarter of 2015, subject to regulatory approvals, third-party consents and customary closing conditions.