Brookfield is teaming up with Singaporean conglomerate Temasek to acquire global renewable energy developer Neoen in a €6.1bn deal.
Brookfield’s second global energy transition fund and Temasek are in talks to acquire a 53.32% stake in Neoen from investors including Impala and an alliance of seven major French insurers that back the Fonds Stratégique de Participations (FSP), as well as Neoen’s chairman and chief executive Xavier Barbaro.
FSP is managed by ISALT, is an alliance of seven French insurers: BNP Paribas Cardif, CNP Assurances, Crédit Agricole Assurances, Groupama, BPCE Assurances, Société Générale Assurances and Suravenir.
If the €39.85 per share offer is successful, Brookfield said it plans an all-cash mandatory tender offer for all remaining shares and outstanding convertible bonds that would value Neoen at €6.1bn.
Brookfield’s renewables arm, the largest investor in the Brookfield Global Transition Fund II, expects to invest up to €500m in the acquisition, which will be funded through available liquidity.
Founded in 2008 and headquartered in France, Neoen has expertise in solar power, wind power and storage. Neoen’s flagship operations are the 300MWp solar farm in Cestas, France; Finland’s largest wind farm of 404MW in Mutkalampi; the 375MWp El Llano solar plant in Mexico; and the large-scale Hornsdale Power Reserve and Victorian Big Battery storage plants in Australia.
Acquiring Neoen would offer exposure to key renewables markets and expertise in battery storage, said Connor Teskey, the chief executive of Brookfield’s renewable power and transition business. Brookfield said it wants to accelerate Neoen’s development and strengthen its position as a global leader in renewable energy.
Neoen’s board unanimously welcomed Brookfield’s proposal, which represents a 27% premium to the stock’s last closing price, the manager added.
Teskey said: “Under Impala’s sponsorship, Neoen has built one of the world’s greatest renewable energy development platforms. We are excited to build on Brookfield’s expertise, track-record and access to capital to further accelerate Neoen’s growth while preserving its culture and identity.
“Acquiring Neoen further strengthens Brookfield’s global scale, while diversifying into key renewables markets and adding expertise in battery storage technology. We look forward to partnering with management to scale-up the business to meet the growing demand we are seeing for clean power.”
Barbaro said: “After 15 years of successful and profitable growth with Impala as our key shareholder, we are thrilled to open a new chapter in Neoen’s history, with the arrival of Brookfield as our new majority shareholder. We look forward to developing a strong relationship with Brookfield that will take Neoen to the next phase of its growth story, further consolidating its leadership position as an independent producer of renewable energy, and one of the most dynamic globally.”
“Our board fully welcomes the transaction and sees Brookfield as a partner of choice to preserve the structure and identity of Neoen in the best interests of its employees and its stakeholders.”
Jacques Veyrat, founder and president at Impala added: “Impala is delighted to sell the control of Neoen to Brookfield, a responsible actor and world leader in the renewable energy market.”
Nicolas Dubourg, managing director of the FSP and chairman of ISALT, said: “We are extremely proud of the way Neoen has developed since its IPO. Driven by a relentless focus on profitable growth, operational discipline and open mindset, and fully focused on renewable energies, Neoen is a best-in-class company in its field.
“The FSP’s strategy is to remain committed to financing the energy transition. [We] have been at Neoen’s side since the IPO in 2018, and along the capital raises to fund the growth of its installed capacity thereafter.
“The proposed operation is a demonstration of how long-term investment in innovating French companies run by talented and experienced managers, with the aim to creating international leaders, can generate meaningful impact on a global scale.”
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