Masdar Inks $3.4 Billion Deal to Acquire Greece Renewable Energy Major

Masdar, the Abu Dhabi-based renewable energy major, said it has agreed to buy Greece’s Terna Energy in a €3.2 billion ($3.4 billion) deal.

The agreement signed June 20 is one of the largest renewable energy transactions in the history of the European Union. Masdar—also known as Abu Dhabi Future Energy Co.—said Thursday it had a “definitive agreement” to buy a 67% stake in Terna Energy, a subsidiary of GEK Terna Group. Terna Energy holds the largest portfolio of renewable energy projects in Greece, with about 2.5 GW either in operation, under construction, or ready to be built.

The deal is still subject to regulatory approval. Masdar also said it will launch an all-cash mandatory tender offer to buy the remaining shares of Terna Energy and fully take over the utility.

Masdar officials said Thursday’s deal values Terna Energy’s total equity at €2.4 billion ($2.57 billion), with an enterprise value of €3.2 billion. The acquisition is the largest-ever energy transaction on the Athens Stock Exchange.

More Capital Investment in Greece

The companies said the deal is expected to pave the way for more capital investment in Greece and other European countries from groups seeking to expand their renewable energy holdings. Masdar also said it is part of the company’s strategy to contribute to Greece’s National Energy and Climate Plan, and support the EU’s target of net-zero carbon emissions by 2050

“Today marks a major milestone in Masdar’s strategy to expand its portfolio to 100 GW of clean energy by 2030, and it will make a substantial contribution to the renewable energy capacity of Greece,” said Dr. Sultan bin Ahmed Al Jaber, the United Arab Emirates’ (UAE’s) minister of Industry and Advanced Technology. Al Jaber also is chairman of Masdar.

“It represents another major practical step in realizing one of the central goals of the UAE Consensus, to triple global renewable energy capacity by 2030,” said Al Jaber.

Terna is Greece’s leading renewable energy standard investor and is at the forefront of the country’s efforts to install more renewable energy generation capacity.

“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,” said Georgios Peristeris, chairman and CEO of GEK Terna. Peristeris also is executive chairman of Terna Energy. “At the same time, it marks the beginning of a new era of even greater growth for GEK TERNA Group,” said Peristeris. “It is also a strong vote of confidence for Greece and its prospects.”

Terna Energy was founded in 1997. The company specializes in financing, developing, building and operating renewable energy facilities, focused on wind, solar, hydroelectric, and pumped storage projects.

Darrell Proctor is a senior associate editor for POWER (@POWERmagazine).

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