Please ensure Javascript is enabled for purposes of website accessibility

Why TerraForm Global Inc's Shares Popped 14% Today

By Travis Hoium – Sep 22, 2016 at 4:05PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Could buyers be emerging for TerraForm Global Inc's shares?

Image source: Getty Images.

What happened

Shares of yieldco TerraForm Global Inc (NASDAQ: GLBL) jumped as much as 14.3% on Thursday after rumors of interested buyers of the company heated up. At 3:50 p.m. EDT, shares were still up 12.3%.

So what?

The big rumor today is that BlackRock has considered bidding for TerraForm Power Inc's (TERP) assets, which could mean they might be interested in TerraForm Global as well. Both yieldcos are reportedly shopping either asset sales, or a sale of the entire company to potential buyers. With funds that could potentially want renewable energy assets, BlackRock is a natural bidder for the assets.  

It's important to note that all of this is just rumors today, and until something more concrete comes in, investors have no idea what a buyer may be willing to pay for the company, or its assets.

Now what?

As the more stable entity because of its operating assets, it's likely TerraForm Power's future structure will be worked out first. The company could be selling assets, SunEdison's stake in the company, or even the entire company, which would set a bar for TerraForm Global. What's uncertain about TerraForm Global is the company's international projects, which may have contracts and debt that need to be renegotiated by a buyer. And with no financial filings available right now, it's tough to know what a buyer would pay for the company.

I'm watching the speculation from the sidelines, because it's too difficult to know what a sale could bring, especially for TerraForm Global. And until a TerraForm Power deal gets done, the international yieldco could be blowing in the wind.

Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

TerraForm Power Stock Quote
TerraForm Power

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/29/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.