Rooftop solar panel installer Vivint Solar (VSLR) said on Tuesday it had terminated an agreement under which it would have been taken over by solar energy company SunEdison (SUNE) after SunEdison failed to consummate the deal.
SunEdison shares were up about 20% in premarket trading, while Vivint‘s were down almost 9%.
SunEdison agreed to buy Vivint, which is controlled by Blackstone Group, on July 20 in a cash-and-stock deal valued at about $2.2 billion.
As part of the deal, SunEdison “yieldco” TerraForm Power had agreed to buy Vivint‘s rooftop solar portfolio for $799 million, revised down from $922 million under pressure from activist hedge fund Appaloosa Management.
Appaloosa CEO David Tepper has been calling on TerraForm Power to “resist” theVivint deal, saying it was a departure from the company’s business model and would put shareholders at risk.
Vivint said it intended to “seek all legal remedies available” as a result of the “willful breach” of the merger agreement by SunEdison.
SunEdison said in December it expected the Vivint deal to close in the first quarter of 2016.