ATHENS – Greek energy company Gek Terna said it has agreed to sell a majority stake in the company to Masdar, a renewables developer based in Abu Dhabi, which will acquire 67 percent of the shares at 20 euros ($21.42) each.

Masdar said it was an equity valuation of 2.4 billion euros ($2.57 billion) and enterprise value of 3.2 billion euros ($3.43 billion,) making it one of the biggest energy transactions in the Athens Stock Exchange’s history and one of the largest in Europe’s clean energy sector, said PV Magazine.

https://www.pv-magazine.com/2024/06/24/masdar-buys-out-greeces-terna-energy-in-e3-2-billion-deal/

Upon securing the necessary regulatory approvals and closing the initial transaction, Masdar plans to launch an all-cash mandatory tender offer to acquire 100 percent of Terna Energy’s shares, ending its Greek ownership.

The deal is Masdar’s largest business move in Greece and comes seven months after the company and Greek government reached a deal to develop a 7 Megawatt solar plant on the island of Poros to cover most of its electricity needs.

Established in 1997, the Greek company is a leader in Greece’s wind energy sector, owning about 1.2 gigawatts of operating onshore wind power capacity. The 330 MW Kafireas project on Evia Island is Terna Energy’s largest operating wind project, with a cluster of wind farms there.

The company is also pursuing plans in Greece’s offshore wind power market, in November 2023 getting one of two “research licenses” to develop offshore wind power farms between Alexandroupoli and the island of Samothraki.

The total value of the deal also includes Masdar assuming 800 million euros ($856.99 million) in Gek Terna’s obligations, the share price seen high because of the Greek company’s high profit margins in its portfolio of renewable projects.

Speaking at the company’s annual general meeting, shareholder Giorgos Peristeris said that the agreement is not made with an investment fund, which by definition has a speculative nature and a specific divestment time horizon.”

“On the contrary, it is done with a company that aims to strengthen its presence in the field of RES projects, which will remain in Greece and utilize Terna Energy so as to be its platform for the development of its activities in the wider region, investing several billion euros,” said Peristeris.