US-based renewable power developers First Solar and SunPower plan to form a joint venture (JV), to which they will contribute some of their solar power generating assets.
The companies are in advanced talks for a ‘Yield Co’ formation, the time frame for which has not yet been decided.
Go deeper with GlobalData
Once the master formation agreement is signed, the firms plan to register with the Securities and Exchange Commission (SEC) for an initial public offering (IPO) of limited partner interests in the Yield Co.
Both the plans for Yield Co formation and IPO await approval from each company’s board and regulatory authorities.
While SunPower had considered forming a ‘Yield Co’ for its power generating assets previously, First Solar had stressed on not separating its solar assets into a publicly traded entity in November last year, reports Reuters.
Other solar manufacturers have also formed similar ‘Yield Cos’ to ensure stable cash flows, which can either be paid out as dividends or reinvested.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataAnother US-based energy firm, SunEdison, had filed an IPO for its unit TerraForm Power in order to secure capital for solar power developments. The shares for Terraform have risen 36% since the IPO, reports Reuters.
