Shares of TerraForm Power Inc. /zigman2/quotes/205933696/composite TERP -0.61% charged up 8.3% in premarket trading Monday, after the solar and wind energy company confirmed it received an "unsolicited, non-binding" all-stock buyout bid from Brookfield Renewable Partners L.P. /zigman2/quotes/203824572/composite BEP -1.26% that would value TerraForm at about $3.93 billion. Under terms of the bid, Brookfield would exchange 0.36 of its shares for each TerraForm share outstanding. Based on Friday's stock closing prices, that would value TerraForm shares at $17.31 each, or an 11% premium. TerraForm said it has formed a special committee to review the bid. Brookfield also said it will raise its quarterly distribution by 5% to an annual payout of $2.17 a share. Based on Friday's stock closing price of $48.07, that would imply a dividend yield of 4.51%, compared with the implied yield for the S&P 500 /zigman2/quotes/210599714/realtime SPX -1.51% of 1.83%. Brookfield's stock slipped 0.2% in premarket trading. Over the past three months, TerraForm's stock has lost 8.1% and Brookfield shares have gained 16.8%, while the S&P 500 has climbed 9.9%.