Solar energy company Sunrun to buy peer Vivint Solar for about US$1.46 billion

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U.S. residential solar installer Sunrun Inc said on Monday it will buy peer Vivint Solar for about US$1.46 billion in an all-stock deal.

FILE PHOTO: Vivint Solar technicians install solar panels on the roof of a house in Mission Viejo, California October 25, 2013. REUTERS/Mario AnzuoniVivint Solar shareholders will receive 0.55 shares of Sunrun for each share held, the companies said in a statement, representing a premium of 10.4per cent to Vivint's Monday close.The deal, unanimously approved by the companies' boards, is valued at US$3.2 billion including debt.

Sunrun's shareholders will hold about 64per cent of the combined company, with the rest owned by Vivint Solar's stockholders.Credit Suisse Securities was the financial adviser to Sunrun, while Morgan Stanley and BofA Securities advised Vivint.Vivint Solar in May reported an adjusted loss of US$1.01 per share in its first-quarter results while withdrawing its full-year forecast. Sunrun posted a net loss of 23 cents per share for the same period.

Business Insider reported in April that Sunrun had laid off at least 100 workers and furloughed another 60 due to the impact of the coronavirus outbreak.

 

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