UAE-based Abu Dhabi Future Energy Company (Masdar) has agreed to acquire Greece’s clean energy platform Terna Energy in a deal that represents an enterprise value of €3.2bn.
In this regard, Masdar has signed a definitive agreement with Terna Energy’s parent company GEK TERNA Group.
According to the terms of the agreement, the UAE-based renewable energy company will initially acquire 67% of the shares of Terna Energy at a price of €20 per share.
Upon the closing of this transaction, Masdar will launch an all-cash mandatory tender offer to buy all the remaining outstanding shares of Terna Energy.
The deal and subsequent offer value the Greek clean energy platform’s total equity at €2.4bn.
Founded in 1997, Terna Energy focuses on financing, developing, constructing and operating renewable energy facilities including wind, solar, hydroelectric and pumped storage projects.
Terna Energy is said to be the largest investor in the renewables energy sector in Greece with a strong portfolio of projects in Greece and Europe.
GEK Terna chairman and CEO and Terna Energy executive chairman Georgios Peristeris said: “Our agreement with Masdar is a recognition of the great value of Terna Energy and the result of the hard work of hundreds of people for more than 25 years.
“At the same time, it marks the beginning of a new era of even greater growth for GEK Terna Group. It is also a strong vote of confidence for Greece and its prospects.”
According to Masdar, the proposed acquisition of Terna Energy is the largest energy transaction on the Athens Stock Exchange and one of the largest in the European renewables market.
Through the potential deal, the Abu Dhabi clean energy company aims to expand its portfolio in Europe as it targets 100GW global capacity by the end of the decade.
The transaction is also anticipated to deliver a significant capital investment in Greece and other European countries. It will support Terna Energy’s contribution to Greece’s National Energy and Climate Plan (NECP) and the EU’s net zero by 2050 target.
Masdar CEO Mohamed Jameel Al Ramahi said: “We are injecting capital and global expertise to accelerate Terna Energy’s expansion, supporting Greece’s renewable energy ambitions and extending Masdar’s global reach.
“As a leading European development platform, Terna Energy is expected to play an important role in Masdar’s growing portfolio in Greece and Europe.”
The deal is contingent upon regulatory approvals and other conditions.
Rothschild & Co. acts as the sole financial advisor while Simmons & Simmons, Bernitsas Law, and Latham & Watkins were legal advisers to Masdar.
GEK Terna Group was supported by Reed Smith and Potamitis Vekris as international and Greek legal advisers. Morgan Stanley served as the sole financial adviser to Terna Energy.
