Masdar makes a play for listed Greek ren developer

20 June, 2024

Emirati state owned developer Masdar today [20 June 2024] unveiled its bid to acquire listed renewables developer Terna Energy having secured commitments for 64.68% stake in the Greek company from existing investors.

The majority stake is being sold by:

Terna Energy's parent company Gek Terna – 36.59%
Terna Energy board menders – 28.09%

The board members offloading their share are:

Georgios Peristeris – chairman
Emmanouel Maragoudakis – chief executive officer
Georgios Spyrou – executive director
Michail Gourzis – board member
Georgios Agrafiotis – deputy chief executive officer

Gek Terna's stake in the company is valued at €880 million (£743m $944m) based on the company valuation which currently stands at €2.4 billion.

The acquisition of the majority stake in the company is subject to regulatory approvals including approval of the transaction by the European Commission for competition clearance and potential foreign development investment clearance by Polish competition authorities.

The deal is set to be finalised in six months (December 2024) after which, Masdar intends to launch a mandatory tender offer to acquire the outstanding shares in Terna Energy – representing a total of 35.32% – for €20 per share.

Masdar's acquisition of 100% interest in Terna Energy is valued at €3.2 billion:

purchase price for the company – €2.4 billion
existing debt – €800 million

Commenting on the proposed acquisition, Masdar chair Sultan Al Jaber added: "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 the renewable energy capacity of Greece.

"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."

Terna Energy was founded in 1997 as a dedicated energy platform of Gek Terna.

The company develops, finances and operates renewables generation assets including onshore wind, solar, hydroelectric and pumped storage.

The acquisition is expected to further Terna Energy's target to amass 6GW in generation assets by 2030.

Masdar has not commented on its intention to potentially delist Terna Energy from the Frankfurt Stock Exchange following completion of the acquisition.

Advisers to Masdar: