Masdar completes acquisition of 70% stake in Terna Energy

UAE’s Masdar said on Thursday that it completed its acquisition of a 70 per cent stake in Terna Energy, a deal that values the Greek renewables firm at EUR3.2bn.

The Abu Dhabi renewable energy firm plans to acquire all outstanding shares of Terna Energy in an all-cash tender offer, subject to regulatory approval.

“Following the closing of the transaction, Masdar will seek regulatory approvals from the Hellenic Capital Markets Commission for the launch of an all-cash mandatory tender offer to acquire the outstanding shares of Terna Energy,” Masdar said in a statement.

Terna Energy owns and operates clean energy projects, including wind, solar, biomass, and hydro technologies. It has the largest and most diversified portfolio in Greece and projects in Bulgaria and Poland.

The company is building one of the largest pumped hydro projects in Europe, the 680 megawatts (MW) Amfilochia project. Masdar’s acquisition of Terna Energy, currently operating at 1.2 gigawatts (GW) and aiming for 6GW by 2029, strengthens its European portfolio as it seeks to grow its capacity to 100GW of renewable energy by 2030.

“Masdar’s acquisition strategy has focused on acquiring not just assets but investing in exceptional teams. Our ambition is to establish Terna Energy as one of our core regional platforms that will help us deliver on our ambitious targets,” said Mohamed Jameel Al Ramahi, CEO of Masdar.

Masdar is expanding in several parts of Europe, Asia, the US, and Africa. Earlier in November, it agreed to invest around $2.8bn (RMB20bn) in renewable energy projects in Belt and Road Initiative (BRI) countries in partnership with China’s Silk Road Fund.

The company has invested in renewable projects worldwide at different stages of development, with an overall capacity of roughly 20 GW and a value of more than $30bn. It expects Europe to be a key contributor to reaching its 100 GW capacity target by 2030.

Together with Iberdrola, the Abu Dhabi renewable energy giant completed turbine installation at the 476 MW Baltic Eagle offshore wind farm in Germany in October. Baltic Eagle wind farm will have an anticipated annual production capacity of 1.9 terawatt-hours (TWh), enough to meet the clean energy demands of 475,000 homes.

Last September, Masdar reached an agreement to acquire green energy firm Saeta Yield from Canada’s Brookfield in a deal valued at $1.4bn (EUR1.2bn) – its second biggest green energy deal in recent months in Spain. It follows the agreement to buy a minority stake in 48 solar plants controlled by Endesa – a unit of Italy’s Enel EUR817m.

Read: Masdar, China’s Silk Road Fund to co-invest $2.8bn in renewables