Stock Terna Masdar
Masdar would eventually launch an all-cash mandatory tender offer to acquire all the remaining outstanding shares of the company to reach 100%. Image Credit: WAM

Abu Dhabi: Abu Dhabi Future Energy Company – Masdar - has signed an agreement to acquire Greece’s Terna Energy for an enterprise value of €3.2 billion ($3.43 billion), UAE’s leading developer and operator of utility-scale renewable energy projects, community grid projects, and energy services announced Wednesday. The acquisition comes as Masdar seeks to reach a renewable power generation capacity of 100 gigawatts by 2030.

Masdar will initially acquire 67 per cent of Terna’s outstanding shares at the completion of the transaction, subject to regulatory approvals and other conditions.

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After the transaction is completed, state news agency WAM reported that Masdar would launch an all-cash mandatory tender offer to acquire all the remaining outstanding shares of the company to reach 100 per cent.

The transaction and subsequent offer value Terna Energy’s total equity at €2.4 billion and enterprise value at €3.2 billion, making it the largest-ever energy transaction on the Athens Stock Exchange and one of the largest in the European renewables market.

“The deal is expected to provide significant capital investment in Greece and other European countries, supporting Terna Energy’s contribution to Greece’s National Energy and Climate Plan (NECP) and the EU’s net zero by 2050 target,” WAM stated.

Deal to stimulate new industries, jobs

Dr Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, Chairman of Masdar, and COP28 President, said, “Today marks a major milestone in Masdar’s strategy to expand its portfolio to 100GW of clean energy by 2030, and it will make a substantial contribution to Greece’s renewable energy capacity.”

Dr Al Jaber said, “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 realising one of the central goals of the UAE Consensus, to triple global renewable energy capacity by 2030.”

Dr Al Jaber explained that the deal underlines the smart growth opportunities of a responsible and orderly energy transition, stimulating new industries, new jobs, and low-carbon economic development.

Mohamed Jameel Al Ramahi, CEO of Masdar, 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.”

New era for growth

Founded in 1997, Terna Energy has established itself as a leading European clean energy platform with over 25 years of experience delivering innovative and sustainable projects. The company specialises in financing, developing, constructing, and operating renewable energy facilities, focusing on wind, solar, hydroelectric, and pumped storage projects.

Georgios Peristeris, Chairman and CEO of GEK Terna and Executive Chairman of Terna Energy, 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.”

Masdar said it has retained Rothschild and Co. as its sole financial advisor and Simmons and Simmons, Bernitsas Law, Latham, and Watkins as its legal advisors in connection with the transaction and financing.

With inputs from WAM