French renewable energy independent power producer (IPP) Neoen has received an offer of acquisition from global investment firm Brookfield Asset Management (BAM). The deal values the company at €6.1 billion ($6.62 billion).
BAM is joined by its institutional partners including Brookfield Renewable and Temasek through a special purpose vehicle exclusively controlled by Brookfield Renewable Holdings in making the bid.
It has entered into exclusive negotiations with Neoen's investors Impala, the Fonds Stratégique de Participations managed by ISALT, Cartusiai and Xavier Barbaro, and other shareholders to acquire close to 53.32% of the outstanding shares of Neoen.
Each share is priced at €39.85 ($43.23), representing a 26.9% premium over the last closing price. The talks also include a mandatory all-cash tender offer for all of the remaining shares and outstanding convertible bonds to acquire 100% of the company.
Neoen's total operational or under-construction capacity at the end of December 2023 was 8 GW, spread across 16 nations on several continents. By 2025, it targets to increase this capacity to 10 GW. It owns nearly 92% of the plants and operates them.
In early-2023, Neoen had revealed plans to develop a minimum 2 GW capacity annually from 2025 to achieve 20 GW operational or under-construction capacity by 2030 (see Neoen Targets 20 GW Renewables Portfolio By 2030).
Under Brookfield, it expects to strengthen its portfolio and stature in the renewable energy space.
"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," said BAM CEO, Renewable Power & Transition, Connor Teskey.
Recently, Brookfield signed up Microsoft as an offtaker for over 10 GW of renewable energy capacity (see Microsoft Signs Up For Over 10.5 GW New RE Capacity).
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