In recent after-hours trading, TerraForm shares jumped 3.5% to $38.86, whereas rise of 3.8% to $30.05 was witnessed in shares of SunEdison.

A majority stake in a portfolio of wind farms in the United States and Canada will be purchased by TerraForm Power Inc. for $2 billion from Invenergy Wind LLC. Together with TerraForm Power, SunEdison’s development platform will change how energy is generated, distributed and owned around the world, ” he added.

Under the deal, TerraForm will acquire seven contracted wind farms in the United States and Canada, the company said on Monday.

A new warehouse facility sponsored by SunEdison and third-party equity investors is expected to buy the remaining 470MW, which is to be taken over by Terraform in the future.

The acquisition leverages SunEdison’s wind portfolio, which began with its acquisition of First Wind in January 2015.

Subject to approval by the Federal Energy Regulatory Commission and the Public Utility Commission of Texas, the transaction is planned to be completed in the fourth quarter.

Invenergy will retain a 9.9 percent stake in the USA assets and plans to use the proceeds to invest in new wind and solar projects, he said.

The 460 MW of contracted wind generation assets will help TerraForm to increase its power generation capacity.

Invenergy chief financial officer and operating business group president Jim Murphy said: “As an independent, privately-held company, this transaction is consistent with how we finance growth in our capital-intensive industry and reflects the strength of Invenergy’s business model”.

Furthermore, TerraForm has announced a 26% hike in its 2016 dividend payments translating into $1.70 per share, up from $1.53 per share.