Sunedison Inc (NYSE:SUNE), the largest global renewable energy development company, and Greenlight Capital, Inc., today announced two mutually agreed upon corporate governance initiatives.
Under the arrangement, SunEdison’s Board of Directors appointed Claire Gogel as an independent director, effective immediately. Ms. Gogel is a private investor and a former Partner at Greenlight Capital, with 20 years of experience in portfolio and hedge fund management. She will also be joining the Nominating and Corporate Governance Committee and the Finance and Investment Committee of SunEdison’s Board of Directors.
Under the same arrangement, following the closing of its pending acquisition of Vivint Solar, SunEdison will amend its bylaws to provide that, for a period of two years, the Company will not be permitted to make equity issuances without a supermajority vote of the Board (which is not obtained if two or more directors vote against such issuances), except in limited circumstances. This bylaw amendment will not affect any of the Company’s contractual commitments existing at the time it is adopted. Until the bylaw amendment is effective, the Company will consult with Greenlight Capital regarding issuances of equity securities, with certain exceptions.
Emmanuel T. Hernandez, Executive Chairman of the Board of SunEdison, said: “As we work to navigate current market conditions, we are very pleased that we will have the benefit of tapping the expertise of a highly-qualified director endorsed by a significant shareholder. We also believe that the new bylaw amendment makes clear our unequivocal commitment to SunEdison and its common shareholders.”
Kirkland & Ellis LLP served as legal advisor to SunEdison on the arrangement, while Willkie Farr & Gallagher LLP advised Greenlight Capital. (Original Source)
Shares of SunEdison closed yesterday at $3.05. SUNE has a 1-year high of $33.45 and a 1-year low of $2.02. The stock’s 50-day moving average is $4.31 and its 200-day moving average is $10.12.
On the ratings front, SunEdison has been the subject of a number of recent research reports. In a report issued on January 20, Avondale analyst Michael Morosi maintained a Buy rating on SUNE, with a price target of $7, which implies an upside of 129.5% from current levels. Separately, on January 19, UBS’s Julien Dumoulin Smith maintained a Sell rating on the stock .
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Michael Morosi and Julien Dumoulin Smith have a total average return of 1.8% and -0.1% respectively. Morosi has a success rate of 62.5% and is ranked #1670 out of 3607 analysts, while Smith has a success rate of 48.8% and is ranked #2075.
Overall, one research analyst has rated the stock with a Sell rating, 3 research analysts have assigned a Hold rating and 10 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $11.40 which is 273.8% above where the stock closed yesterday.
SunEdison Inc is a developer and seller of photovoltaic energy solutions, an owner and operator of clean power generation assets. The Company is also engaged in the development, manufacture and sale of silicon wafers to the semiconductor industry.