Masdar to Purchase Greek RE Agency Terna Power

The state-backed Abu Dhabi Future Power Co. PJSC (Masdar) has secured a deal to merge with Terna Power SA, a renewable vitality firm in Greece, for an enterprise worth of EUR 3.2 billion ($3.4 billion).

The definitive settlement would initially switch 67 % of Terna Power’s excellent shares to Masdar. “After completion of the transaction, Masdar will launch an all-cash obligatory tender provide to accumulate all of the remaining excellent shares of the corporate with the intention of reaching 100%”, a joint assertion stated.

“The transaction and subsequent provide values TERNA ENERGY’s whole fairness at 2.4bn euros [$2.6 billion] with an enterprise worth of three.2bn euros, making it the most important ever vitality transaction on the Athens Inventory Change, and one of many largest within the European renewables market”.

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No timeline has been supplied for the completion of the settlement between Masdar and Terna Power’s shareholders, which embody Gek Terna SA. The mix is topic to regulatory approvals and different circumstances.

“TERNA ENERGY is anticipated to play an essential function in rising Masdar’s portfolio throughout Europe because it [Masdar] targets 100 gigawatts (GW) world capability by 2030 in help of the worldwide vitality transition”, the 2 firms stated. “It additionally displays Masdar’s confidence in TERNA ENERGY’s progress potential, in addition to the power of the Greek market and its renewables sector”.

Terna Power goals to succeed in six GW of operational capability by 2030. It had reported 1,227 megawatts of put in capability in its newest quarterly monetary report, for January–March 2024.

Greece plans to boost the share of renewables in its general energy consumption to 82 % by 2030, up from 67 % beforehand, in accordance with the Mediterranean nation’s draft Nationwide Power and Local weather Plan. The 27-member EU, in the meantime, targets to supply 45 % of its general vitality combine from renewables by the top of the last decade, 42.5 % of which is binding whereas 2.5 % is aspirational, in accordance with the Renewable Power Directive adopted by the European Council final October 9, 2023.

“The transaction is aligned with GEK TERNA’s technique of turning into the main diversified infrastructure group in Greece and Southeast Europe and can speed up the Group’s path to a brand new progress period”, the 2 firms stated.

Masdar chair Sultan Al Jaber, who can be UAE minister for business and superior know-how, commented, “As certainly one of Europe’s largest renewable vitality transactions in 2024, this funding displays the UAE’s clear dedication to Greece and Europe’s clear vitality improvement and it represents one other main sensible step in realizing one of many central targets of the UAE Consensus, to triple world renewable vitality capability by 2030”.

The UAE and dozens of different nations at COP28, hosted in Dubai final November and December, backed a goal of elevating the worldwide renewable capability to a minimum of 11,000 GW by 2030, agreeing to broaden related funding and undertake coverage reforms.

Gek Terna government chair Georgios Peristeris, who additionally serves as chair and chief government of Terna Power, for his half stated, “Our settlement with Masdar is a recognition of the good worth of TERNA ENERGY and the results of the arduous work of a whole lot of individuals for greater than 25 years”.

“TERNA ENERGY is the main RES investor in Greece and a key pillar of the nationwide effort to transition to a future with cleaner and cheaper vitality for all”, Peristeris added. “A future with better vitality autonomy for our nation, based mostly on clear vitality that shall be produced in our homeland”.

After the merger, Peristeris and Terna Power chief government Emmanuel Maragoudakis would retain their roles, the joint assertion stated.

To contact the writer, electronic mail jov.onsat@rigzone.com