Masdar has reached an agreement to acquire Green renewable energy company Terna Energy.
Masdar has reached a definitive agreement with the shareholders of Terna Energy to acquire 67% of the company’s outstanding shares.
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%.
The transaction and subsequent offer values Terna Energy’s total equity at €2.4bn with an enterprise value of €3.2bn, 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.
The proposed acquisition demonstrates the scale and ambition of Masdar’s growth plans in the region.
Established in 1997, Terna Energy specialises in financing, developing, constructing and operating renewable energy facilities, focused on wind, solar, hydroelectric and pumped storage projects.
The company has recently announced its growth plan targeting renewable energy operational capacity of 6GW by 2030 and is the largest investor in the renewables energy sector in Greece.
The proposed acquisition is expected to play an important role in growing Masdar’s portfolio in Europe as it targets 100GW global capacity by 2030.
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.
The transaction is aligned with main shareholder 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”.
Terna Energy’s Executive Chairman, Georgios Peristeris, and Chief Executive Officer, Emmanuel Maragoudakis, will continue in their current roles following completion of the transaction.
Peristeris 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.
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.”
Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, Chairman of Masdar and COP28 President, 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.
“In short, this deal underlines the smart growth opportunities of a responsible and orderly energy transition stimulating new industries, new jobs and low carbon economic development.”