Fox Business Flash top headlines for July 6
Fox Business Flash top headlines are here. Check out what’s clicking on FoxBusiness.com.
Sunrun Inc said on Monday it will buy Blackstone-backed peer Vivint Solar for about $1.46 billion in an all-stock deal, as the top U.S. residential solar installers look to solidify their market position.
Continue Reading Below
The deal will also help Sunrun compete better with Tesla Inc's SolarCity in a residential solar market, which, according to the companies, has reached only 3% penetration in the United States.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Vivint Solar shareholders will receive 0.55 of Sunrun common stock for each share held, representing a premium of 10.4% to Vivint's Monday close.
The deal, unanimously approved by the companies' boards, is valued at $3.2 billion including debt.
TESLA SLASHES PRICES WITH NEW SOLAR PANEL
Blackstone Group Inc owns a 55.84% stake in Vivint Solar, according to Refinitiv Eikon data.
The private equity company bought Vivint Solar's parent, Vivint Inc, in 2012 for more than $2 billion. Vivint Solar went public in 2014.
|VSLR||VIVINT SOLAR INC||10.63||+0.56||+5.56%|
The deal is expected to close by the fourth quarter of 2020 and deliver annual cost savings of about $90 million, the companies said.
TRUMP APPROVES BUFFETT-BACKED SOLAR PROJECT NEAR LAS VEGAS
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 $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.
CLICK HERE TO READ MORE ON FOX BUSINESS
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.
(Reporting by Shubham Kalia and Kanishka Singh in Bengaluru; Editing by Sriraj Kalluvila)
Source: Read Full Article