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SunEdison has offered Vivint shareholders $9.89 in cash, $3.31
in stock and $3.30 in notes for every share held.
The offer works out to $16.50 per share, a 51.7 percent premium
to Vivint's Friday close. Vivint's shares were up 44 percent in
premarket trading on Monday.
Demand for rooftop solar systems is booming due to falling
equipment costs that have allowed startups to sell power at
prices lower than those offered by traditional utilities.
Vivint, the second-biggest installer of rooftop solar panels
behind Elon Musk-backed SolarCity Corp, has operations in seven
states including California and New York. The company went
public last October.
SunEdison said its unit, TerraForm Power Inc, would subsequently
buy Vivint's rooftop solar portfolio of 523 megawatts (MW),
expected to be installed by year-end 2015, for $922 million in
cash.
BofA Merrill Lynch advised SunEdison, while Morgan Stanley & Co
LLC acted as Vivint Solar's adviser.
(Reporting by Anannya Pramanick in Bengaluru; Editing by Sriraj
Kalluvila)
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