UAE: Masdar Acquires 70% Of TERNA ENERGY In Major EU Renewables Deal

Masdar, the Abu Dhabi Future Energy Company PJSC, has finalised the acquisition of 70% of TERNA ENERGY SA's shares from GEK TERNA SA and other stakeholders. This transaction, valued at 20 euros per share, places TERNA ENERGY's enterprise value at 3.2 billion euros. It marks the largest energy deal on the Athens Stock Exchange and is among the most significant in the EU renewables sector.

TERNA ENERGY has been a prominent player in renewable energy for over 20 years. The company boasts Greece's largest and most varied portfolio, with projects in Bulgaria and Poland as well. It operates clean energy initiatives across wind, solar, biomass, and hydro technologies. Notably, it is constructing one of Europe's largest pumped hydro projects, the 680 MW Amfilochia project.

Following this acquisition, Masdar plans to seek approval from the Hellenic Capital Markets Commission for an all-cash mandatory tender offer to acquire remaining shares of TERNA ENERGY. This move underscores Masdar’s belief in TERNA ENERGY’s growth potential. Currently operating at a capacity of 1.2 GW, TERNA ENERGY aims for 6 GW by 2029.

Mohamed Jameel Al Ramahi, CEO of Masdar, expressed pride in becoming TERNA ENERGY's majority shareholder. He stated: "Masdar is proud to become the majority shareholder of TERNA ENERGY, bringing together two energy champions." He emphasised that their shared vision will unlock growth opportunities as they support Greece’s renewable goals.

Al Ramahi highlighted Masdar's strategy of investing in exceptional teams alongside assets. He looks forward to collaborating with Georgios Peristeris and Emmanuel Maragoudakis to advance Greece and Europe’s energy transition. This partnership aims to establish TERNA ENERGY as a core regional platform for Masdar’s ambitious targets.

Shared Goals for Clean Energy

Georgios Peristeris, Chairman and CEO of GEK TERNA and Executive Chairman of TERNA ENERGY, remarked on the agreement with Masdar: "Our agreement with Masdar is a reflection of TERNA ENERGY’s unparalleled leading role in the green energy transition in Greece as well as in southeastern Europe." He acknowledged their shared vision for clean and affordable energy.

Masdar has engaged Rothschild & Co. as its sole financial advisor for this transaction. Legal advice was provided by Simmons & Simmons, Bernitsas Law, Latham & Watkins. Meanwhile, GEK TERNA Group received legal support from Reed Smith LLP internationally and Potamitis Vekris locally.

TERNA ENERGY received financial advice from Morgan Stanley during this process. The collaboration between these entities highlights a concerted effort towards achieving sustainable energy goals across Europe while enhancing Masdar’s portfolio globally.

The acquisition aligns with Masdar's target of reaching a global capacity of 100 GW by 2030. This strategic move supports their commitment to advancing renewable energy solutions worldwide while fostering growth within Europe through partnerships like that with TERNA ENERGY.

With inputs from WAM