UAE’s state-backed Abu Dhabi Future Energy Co. PJSC (Masdar) has secured a deal to merge with Terna Energy SA, a renewable energy company in Greece, for an enterprise value of EUR 3.2 billion ($3.4 billion).
The definitive agreement would initially transfer 67 percent of Terna Energy’s outstanding shares to Masdar.
“After completion of the transaction, Masdar will launch an all-cash mandatory tender offer to acquire all the remaining outstanding shares of the company with the intention of reaching 100 percent”, a joint statement said.
“The transaction and subsequent offer values TERNA ENERGY’s total equity at 2.4bn euros [$2.6 billion] with an enterprise value of 3.2bn euros, making it the largest ever energy transaction on the Athens Stock Exchange, and one of the largest in the European renewables market”.
No timeline has been provided for the completion of the agreement between Masdar and Terna Energy’s shareholders, which include Gek Terna SA. The combination is subject to regulatory approvals and other conditions.
“TERNA ENERGY is expected to play an important role in growing Masdar’s portfolio across Europe as it [Masdar] targets 100 gigawatts (GW) global capacity by 2030 in support of the global energy transition”, the two companies said.
“It also reflects Masdar’s confidence in TERNA ENERGY’s growth potential, as well as the strength of the Greek market and its renewables sector”.
UAE and Terna energy deal as Greece increases share of renewables
Terna Energy aims to reach six GW of operational capacity by 2030. It had reported 1,227 megawatts of installed capacity in its latest quarterly financial report, for January–March 2024.
Greece plans to raise the share of renewables in its overall power consumption to 82 percent by 2030, up from 67 percent previously, according to the Mediterranean country’s draft National Energy and Climate Plan.
The 27-member EU, meanwhile, targets to source 45 percent of its overall energy mix from renewables by the end of the decade, 42.5 percent of which is binding while 2.5 percent is aspirational, according to the Renewable Energy Directive adopted by the European Council last October 9, 2023.
“The transaction is aligned with GEK TERNA’s strategy of becoming the leading diversified infrastructure group in Greece and Southeast Europe and will accelerate the Group’s path to a new growth era”, the two companies said.
Masdar chair Sultan Al Jaber, who is also UAE minister for industry and advanced technology, commented, “As one of Europe’s biggest renewable energy transactions in 2024, this investment reflects the UAE’s clear commitment to Greece and Europe’s clean energy development and 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”.
Gek Terna executive chair Georgios Peristeris, who also serves as chair and chief executive of Terna Energy, for his part 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”.
“TERNA ENERGY is the leading RES investor in Greece and a key pillar of the national effort to transition to a future with cleaner and cheaper energy for all”, Peristeris added. “A future with greater energy autonomy for our country, based on clean energy that will be produced in our homeland”.
After the merger, Peristeris and Terna Energy chief executive Emmanuel Maragoudakis would retain their roles, the joint statement said.
Related: Greece Sees Huge Increase in Renewable Energy Applications
See all the latest news from Greece and the world at Greekreporter.com. Contact our newsroom to report an update or send your story, photos and videos. Follow GR on Google News and subscribe here to our daily email!
