United Arab Emirates renewable energy company Masdar said on Thursday it has fully acquired Greece’s Terna Energy, following the purchase of a controlling stake last year, marking another step in its international expansion strategy. Abu Dhabi Future Energy Company PJSC Masdar (“Masdar”), the UAE’s clean energy leader, announced the successful acquisition of a 70% stake in TERNA ENERGY SA (TENERGY.AT) from GEK TERNA SA. (GEKTERNA.AT) and other shareholders, and has received all regulatory approvals, Terna Energy has reported.
The deal, agreed at a price of 20 euros per share, values TERNA ENERGY at 3.2 billion euros, representing the largest-ever energy transaction on the Athens Stock Exchange and one of the largest in the EU renewable energy sector, Terna Energy has reported. Following the completion of the transaction, Masdar will seek regulatory approval from the Hellenic Capital Markets Commission (HCNC) to launch a mandatory tender offer (“MTO”) to acquire the outstanding shares of TERNA ENERGY.
TERNA ENERGY has been a key player in the renewable energy sector for over two decades, with the largest and most diversified portfolio in Greece, as well as projects in Bulgaria and Poland. The company owns and operates clean energy projects related to wind, solar, biomass and hydro technologies. With TERNA ENERGY currently operating with a capacity of 1.2 gigawatts (GW), this acquisition reflects Masdar’s confidence in the company’s impressive growth potential, targeting 6 GW by 2029. TERNA ENERGY will play a key role in expanding Masdar’s portfolio across Europe as it targets a global capacity of 100 GW by 2030 to support the energy transition.
Masdar and Terna Energy: Leaders in Energy
Mohamed Jamil Al Ramahi, Chief Executive Officer of Masdar, commented: “Masdar is proud to become the majority shareholder of TERNA ENERGY, bringing together two leaders in the energy sector. Our focused vision and long-term capital will open up significant opportunities for further growth in TERNA ENERGY’s expansion as it executes its strategy to support Greece’s renewable energy goals. He noted that Masdar’s acquisition strategy focuses not only on acquiring assets but also on investing in exceptional teams. “We aim to establish TERNA ENERGY as one of our core regional platforms that will help us achieve our ambitious goals. I look forward to working with CEO Georgios Peristeris and CEO Emmanuel Maragoudakis to support the energy transition in Greece and Europe,” he added.
Georgios Peristeris, Chairman and CEO of GEK TERNA and CEO of TERNA ENERGY, said that the agreement with Masdar is a reflection of TERNA ENERGY’s unprecedented leadership in the green energy transition in Greece, as well as in Southeastern Europe, and is the result of the company’s consistent and tireless efforts over the past 25 years to create the largest and fastest growing clean energy platform. He added: “Sharing the same vision with Masdar for clean, affordable and domestically produced energy, we look forward to working together on a future of limitless growth opportunities for TERNA ENERGY.”
Masdar’s European Market Presence
Masdar has engaged Rothschild & Co. as sole financial advisor, as well as Simmons & Simmons, Bernitsas Law, Latham & Watkins as legal advisors in connection with the transaction and financing. GEK TERNA Group was supported by Reed Smith LLP and Potamitis Vekris, who were international and Greek legal advisors to the transaction, respectively, while Morgan Stanley is acting as sole financial advisor to TERNA ENERGY. Masdar, seeking to capitalize on opportunities in a sector that has been hit by high interest rates and rising debt costs, has been expanding its presence in European markets in recent months. In November, it acquired 70% of Terna for 20 euros per share, which it said gave Terna an enterprise value of 3.2 billion euros ($3.52 billion) and a valuation of the shares of 2.4 billion euros.
The remaining shares were purchased at the same price through a mandatory tender offer and a squeeze-out of the remaining shareholders, Masdar said in a statement. Masdar CEO Mohamed Jamil Al Ramahi said the acquisition of Terna underscores the company’s commitment to the energy transformation in Greece and Europe. The company also has plans to expand in Asia and the United States. It wants to increase its capacity to 100 gigawatts of renewable energy by 2030 from about 51 gigawatts currently in various stages of development. Masdar, headquartered in the UAE capital Abu Dhabi, is controlled by energy and water company TAQA, state-owned oil giant ADNOC and sovereign wealth fund Mubadala Investment Company. It is in the early stages of considering an initial public offering.