UAE renewables energy company Masdar has signed a deal to acquire a majority stake in Athens-listed Terna Energy.

According to the deal, Masdar will acquire initially 67% of the company's outstanding shares at completion of the transaction, subject to regulatory approvals and other conditions.

The acquisition price represents an equity valuation of 2.4 billion euros ($2.6 billion) and an enterprise value (EV) of 3.2 billion euros ($3.4 billion).

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 deal is Athens Stock Exchange’s largest ever energy transaction and one of the largest in the European Union’s renewables energy industry.

Masdar, which is owned by Abu Dhabi state oil company ADNOC, utilities company TAQA and sovereign investor Mubadala, said an agreement has been signed with parent company GEK TERNA and other shareholders to acquire the outstanding shares for €20.002 per share, representing an equity valuation of €2.4 billion and an enterprise value of €3.2 billion. 

Masdar is targeting 100 gigawatts (GW) global capacity by 2030.

Terna Energy, which was established in 1997, finances, develops, constructs and operates renewable energy facilities including wind, solar, hydroelectric and pumped storage projects. The company has plans to reach renewable energy operational capacity of 6GW by 2030.

Terna Energy executive chairman, Georgios Peristeris, and CEO Emmanuel Maragoudakis will continue to work in their current roles following the transaction.

Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, chairman of Masdar and COP28 President, who is also CEO of ADNOC said: “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.”

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

(Writing by Imogen Lillywhite; editing by Seban Scaria)