REG-TotalEnergies SE Electricity: TotalEnergies Fully Acquires Total Eren After a Successful Strategic Alliance of Five Years

TotalEnergies SEAnnouncement

25/07/2023 07:45

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Electricity: TotalEnergies Fully Acquires Total Eren After a Successful
Strategic Alliance of Five Years

 

TotalEnergies (Paris:TTE) (LSE:TTE) (NYSE:TTE) is pursuing its profitable
growth in the renewable energy sector with today’s announcement that it is
buying out Total Eren’s other shareholders, increasing its stake from close
to 30% to 100%. The Total Eren teams will be fully integrated within
TotalEnergies’ Renewables business unit. The deal follows the strategic
agreement signed between TotalEnergies and Total Eren in 2017, which granted
TotalEnergies the right to acquire all of Total Eren (formerly EREN RE) after
a five-year period.

As part of this transaction, Total Eren is valued at an Enterprise Value of
€3.8 billion based on an attractive EBITDA multiple negotiated in the
initial strategic agreement signed in 2017. The acquisition of 70,8%(1)
represents a net investment of around €1.5 billion for TotalEnergies.

Total Eren’s integration should result in an increase in TotalEnergies’
Integrated Power Net Operating Income of around €160 million and CFFO of
around €400 million in 2024.

A global player with a 3.5 GW renewables production and a 10 GW pipeline

Total Eren has 3.5 GW of renewable capacity in operation worldwide and a
solar, wind, hydroelectric and storage projects pipeline of over 10 GW in 30
countries, of which 1.2 GW are in construction or late-stage development.
TotalEnergies will leverage Total Eren’s 2 GW assets in operation in
merchant countries (notably Portugal, Greece, Australia, and Brazil) to build
up its integrated power strategy. TotalEnergies will also benefit from Total
Eren’s footprint and ability to develop projects in other countries such as
India, Argentina, Kazakhstan, or Uzbekistan.

A complementary fit with TotalEnergies’ footprint and workforce

Total Eren will not only contribute high-quality operated assets, but also the
expertise and skills of nearly 500 people based in more than 20 countries.
Total Eren’s successful organic growth testifies to the expertise that its
teams have built up internally and in connection with partners and suppliers
since its creation in 2012. The teams and the quality of Total Eren’s
portfolio will strengthen TotalEnergies’ ability to deliver production
growth while optimizing its operating costs and capex by leveraging its size
and purchasing bargaining power.

A pioneer in green hydrogen

Further to its activities as a renewable energy producer, Total Eren has
launched pioneering green hydrogen projects in recent years, located in
various regions, such as North Africa, Latin America, and Australia. These
green hydrogen activities will be pursued through a new partnership in an
entity named "TEH2” (80% owned by TotalEnergies and 20% owned by EREN
Group).

“Our partnership with Total Eren has been very successful, as shown by the
size and quality of the renewables portfolio. With the acquisition and
integration of Total Eren. we are now opening a new chapter of our development
as the expertise of its team and its complementary geographical footprint will
strengthen our renewable activities and our ability to build a profitable
integrated power player,” said Patrick Pouyanné, Chairman & CEO of
TotalEnergies. “I want to thank Total Eren’s founders, Pâris Mouratoglou
and David Corchia, as well as their teams, for their incredible development
work, which led to this successful achievement. Today, we are welcoming Total
Eren’s experienced teams, who will continue their remarkable work with the
added resources of a bigger company.”

Pâris Mouratoglou, Chairman of Total Eren, stated: “With Total Eren, we
have successfully created a best-in-class renewable energy player. I want to
thank BPI France, Tikehau Capital, NextWorld and Peugeot Invest, for their
constant support since 2015. I also want to thank Patrick Pouyanné for his
trust and for the spirit of partnership that has led to such achievements with
TotalEnergies over the last five years.”

David Corchia, CEO of Total Eren, added: “This success belongs first to
Total Eren’s teams around the globe. They will undoubtedly make a huge
contribution to TotalEnergies’ highly ambitious plan in the renewable
sector. Together with Pâris Mouratoglou, we will continue creating and
developing new companies for the energy transition and the planet’s
decarbonization, as well as, within our new promising partnership with
TotalEnergies, the development of giant green hydrogen production projects
worldwide.”

***

TotalEnergies and renewables electricity

As part of its ambition to get to net zero by 2050, TotalEnergies is building
a portfolio of activities in electricity and renewables. At the end of March
2023, TotalEnergies' gross renewable electricity generation installed capacity
was 18 GW. TotalEnergies will continue to expand this business to reach 35 GW
of gross production capacity from renewable sources and storage by 2025, and
then 100 GW by 2030 with the objective of being among the world's top 5
producers of electricity from wind and solar energy.

About TotalEnergies

TotalEnergies is a global multi-energy company that produces and markets
energies: oil and biofuels, natural gas and green gases, renewables and
electricity. Our more than 100,000 employees are committed to energy that is
ever more affordable, cleaner, more reliable and accessible to as many people
as possible. Active in nearly 130 countries, TotalEnergies puts sustainable
development in all its dimensions at the heart of its projects and operations
to contribute to the well-being of people.

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Cautionary Note

The terms “TotalEnergies”, “TotalEnergies company” or “Company” in
this document are used to designate TotalEnergies SE and the consolidated
entities that are directly or indirectly controlled by TotalEnergies SE.
Likewise, the words “we”, “us” and “our” may also be used to refer
to these entities or to their employees. The entities in which TotalEnergies
SE directly or indirectly owns a shareholding are separate legal entities.
This document may contain forward-looking information and statements that are
based on a number of economic data and assumptions made in a given economic,
competitive and regulatory environment. They may prove to be inaccurate in the
future and are subject to a number of risk factors. Neither TotalEnergies SE
nor any of its subsidiaries assumes any obligation to update publicly any
forward-looking information or statement, objectives or trends contained in
this document whether as a result of new information, future events or
otherwise. Information concerning risk factors, that may affect
TotalEnergies’ financial results or activities is provided in the most
recent Universal Registration Document, the French-language version of which
is filed by TotalEnergies SE with the French securities regulator Autorité
des Marchés Financiers (AMF), and in the Form 20-F filed with the United
States Securities and Exchange Commission (SEC).

______________________

(1) On a fully-diluted basis

TotalEnergies Contacts 

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