BREAKING: Vivint Solar cancels merger agreement with SunEdison

Share

Vivint Solar, the U.S. rooftop solar installation company, has today announced that it has terminated a merger agreement with clean energy company SunEdison following what it claims was a "willful breach" of the agreement by the solar giant.

SunEdison, which has been fighting a number of fires on many fronts in recent weeks, today received a letter from Vivint notifying the company of its failure to meet its obligations set out in the terms of the merger agreement, particularly in relation to SunEdison’s failure to consummate the merger when required pursuant to the terms of the contract.

Vivint shareholders in February approved the SunEdison acquisition, which had rumbled on for more than six months. The approval in February was voted for overwhelmingly, by 100 million votes for and just 101,000 against, making today’s termination of the agreement somewhat surprising.

In December, Raj Prabhu, Mercom Capital CEO, remarked that the $1.9 billion acquisition – despite its delays and wranglings – was something of a formality, particularly in light of the ITC extension announced shortly afterwards.

However, amendments to the original merger agreement were sought and approved late last year, and these served to open the back door for the possibility of a cancellation. The renegotiated terms meant that Vivint Solar would be allowed to solicit and negotiate with other potential buyers prior to approval of the merger, with its penalty for reneging on the deal lowered from $62 million to $34 million.

The shareholders’ approval was considered the final hurdle, but the Vivint Solar letter sent today to SunEdison confirming the deal’s cancellation added that it intends to "seek all legal remedies available" as a result of the "willful breach" of the merger agreement.

More to follow…

Share

Related content

Elsewhere on pv magazine...

1 comment

Leave a Reply

Please be mindful of our community standards.

Your email address will not be published. Required fields are marked *

By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.

Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.

You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.

Further information on data privacy can be found in our Data Protection Policy.