UAE renewables company Masdar to buy Greece's Terna Energy

GEK TERNA

20/06/2024 13:14

DUBAI, June 20 (Reuters) - United Arab Emirates
renewable energy company Masdar said on Thursday it has reached
an agreement to buy an initial 67% stake in Greece's Terna
Energy  TENr.AT  and intends to make a mandatory offer to buy
the rest.
    Masdar has signed a definitive agreement with Greek
conglomerate GEK Terna  HRMr.AT  and other shareholders to buy
the 67% stake in Terna Energy at 20 euros ($21.45) per share.
    The acquisition price gives the Greek renewables company an
equity valuation of 2.4 billion euros and an enterprise value of
3.2 billion euros, the two companies said.
    GEK Terna owned 37.93% of Terna Energy as of June 4,
according to LSEG data.    
    The transaction is subject to regulatory approvals and other
conditions. Once completed, "Masdar will launch an all-cash
mandatory tender offer to acquire all the remaining shares of
TERNA ENERGY with the intention of reaching 100%," the statement
said.
    Masdar is expanding in several parts of Europe, as well is
in Asia, the United States and elsewhere, as it seeks to grow
its capacity to 100 gigawatts of renewable energy by 2030.
    Masdar is owned by state-controlled energy and utilities
firm TAQA, Abu Dhabi sovereign wealth fund Mubadala and Abu
Dhabi National Oil Company, which hold stakes of 43%, 33% and
24%, respectively.
    "As one of Europe's biggest renewable energy transactions in
2024, this investment reflects the UAE's clear commitment to
Greece and Europe's clean energy development," said Sultan Al
Jaber, Masdar's chairman and president of the COP28 climate
summit hosted by the UAE last year.
    Rothschild & Co was financial adviser to Masdar and Simmons
& Simmons, Bernitsas Law and Latham & Watkins were legal
advisers for the deal and financing.
    Reed Smith and Potamitis Vekris were legal advisers to GEK
Terna Group and Morgan Stanley was financial adviser to Terna
Energy.

($1 = 0.9323 euros)

 (Reporting by Yousef Saba. Editing by Jane Merriman)
 ((Yousef.Saba@thomsonreuters.com; +971562166204; https://x.com/YousefSaba))