Brookfield’s Terraform Buyout Too Cheap Due to Covid, Suit Says

Terraform Power Inc. was sued for records in Delaware by two pension funds claiming its proposed $1.58 billion take-private buyout by Brookfield Asset Management Inc. is drastically underpriced because it was negotiated by conflicted directors during the initial market panic over the coronavirus.

“Brookfield exploited the Covid-19 pandemic and its extreme initial depression of TERP’s stock trading price,” the Chancery Court complaint says.

The suit, filed Wednesday, accuses the Terraform special committee set up to negotiate the buyout of “simply ignoring” the “economic and financial market upheaval” caused by the World Health Organization’s decision to classify Covid-19 as a pandemic ...