Brookfield Asset Management has announced plans to acquire a majority stake in French renewable energy developer Neoen in a deal that values 100% of the latter at €6.1bn.
In this connection, the alternative asset manager and its institutional partners including Brookfield Renewable and Temasek have entered into exclusive talks with Neoen’s shareholders. The buyers intend to acquire a 53.32% stake in the French company at a price of €39.85 per share.
Neoen’s shareholders include Impala, the Fonds Stratégique de Participations managed by ISALT, Cartusiai and Xavier Barbaro, and others.
After acquiring the majority stake, Brookfield Renewable will initiate a compulsory all-cash tender offer for the remaining shares and outstanding convertible bonds in Neoen, offering the same per-share price.
Established in 2008, Neoen has a portfolio of 8GW wind, solar, and storage assets in operation or under construction. It also has 20GW advanced pipeline of development projects located particularly in Australia, France, and the Nordics.
Through the investment, Brookfield aims to scale Neoen’s portfolio of diverse high-quality assets. It will also expedite the French company’s development and bolster its position as a major force in renewable energy.
Neoen chairman and CEO Xavier Barbaro said: “We look forward to developing a strong relation with Brookfield that will take Neoen to the next phase of its growth story, further consolidating its leadership position as an independent producer of renewable energy, and one of the most dynamic globally.
“Our Board of Directors fully welcomes the transaction and sees Brookfield as a partner of choice to preserve the structure and identity of Neoen in the best interests of its employees and its stakeholders.”
According to Brookfield, the definitive agreements for the majority stake acquisition will be signed following the consultation with employee representative bodies.
The deal is contingent upon customary regulatory approvals including antitrust and foreign investments clearances, which are expected to be secured by Q4 2024.
Subsequently, Brookfield aims to launch the tender during Q1 2025.
The transaction is anticipated to be carried out via Brookfield Global Transition Fund II, which serves as Brookfield’s platform for investing in and advancing the global shift toward a net-zero economy.
Brookfield Renewable, which is the largest investor in the Brookfield Global Transition Fund II, will invest up to €500m in the acquisition.
Brookfield Asset Management renewable power and transition CEO Connor Teskey said: “We are excited to build on Brookfield’s expertise, track-record and access to capital to further accelerate Neoen’s growth while preserving its culture and identity.
“Acquiring Neoen further strengthens Brookfield’s global scale, while diversifying into key renewables markets and adding expertise in battery storage technology.”
