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UAE’s Masdar to acquire stake in Greece’s Terna Energy for $2.6 billion

Masdar plans to fully acquire Terna Energy and will initiate a mandatory tender offer to buy the remaining shares.

UAE’s Masdar to acquire stake in Greece’s Terna Energy for $2.6 billion
[Source photo: Krishna Prasad/Fast Company Middle East]

In a deal set to become the largest-ever energy transaction on the Athens Stock Exchange and one of the biggest in the European renewables sector, UAE-based clean energy giant Masdar has signed an agreement to acquire a controlling stake in Terna Energy.

The deal, subject to regulatory approvals, will see Masdar acquire 67% of Terna Energy’s outstanding shares for a total consideration of $2.6 billion, valuing the company at an enterprise value of $3.4 billion.

Following the acquisition, Masdar intends to launch a mandatory tender offer to purchase the remaining shares to gain full ownership of Terna Energy. This strategic move aligns with Masdar’s ambitious target of reaching 100 gigawatts (GW) of global clean energy capacity by 2030.

Terna Energy, established in 1997, complements this vision with its strong presence in developing and operating renewable energy projects across wind, solar, hydro, and pumped storage technologies. The Greek company aims to achieve 6 GW of operational renewable capacity by 2030.

The transaction ensures leadership continuity at Terna Energy, with Executive Chairman Georgios Peristeris and CEO Emmanuel Maragoudakis retaining their positions.

Commenting on the deal, Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, Masdar chairman, and COP28 President, emphasized its significance for a sustainable future: “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 secured Rothschild & Co. as their sole financial advisor, while Simmons & Simmons, Bernitsas Law, and Latham & Watkins will provide legal counsel on the transaction and financing.

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