United Arab Emirates renewable energy company Masdar is set to buy renewable power company Saeta Yield from Brookfield for an estimated enterprise value of $1.4 billion, as Abu Dhabi’s clean energy pioneer seeks to expand its European portfolio.
The transaction consists of a portfolio of 745 megawatts (MW) of primarily wind assets (538 MW of wind assets in Spain, 144 MW of wind assets in Portugal and 63 MW of solar PV assets in Spain), with a development pipeline of 1.6 gigawatts (GW).
However, the deal does not include Brookfield’s regulated portfolio of 350MW concentrated solar power assets, which it will retain and continue to operate, according to a statement on Tuesday.
Masdar engaged Citigroup Global Markets Limited as its transaction advisor, Linklaters as its legal advisor, UL as its technical advisor and KPMG as its financial and tax advisor.
Santander and Société Générale advised Brookfields.
The acquisition is expected to close around the end of 2024, subject to customary approvals.
The company aims to have 100GW of global capacity by 2030, according to a statement, and the deal marks Spain and Portugal’s largest renewable energy deal, advancing Masdar’s growth plans in the region.
In July, Masdar agreed to acquire a 49.99% stake in 48 solar farms with a total capacity of 2 gigawatts managed by Spain’s Endesa SA for $887 million.
In March this year, Masdar and Spain’s Iberdrola also completed financing for the 476MW Baltic Eagle offshore wind project, located in the Baltic Sea, off the coast of Germany.
Abu Dhabi’s national energy company TAQA owns 43% of Masdar, while Mubadala has 33% and state energy giant ADNOC has 24%.
By Brinda Dharasha. Edited by Sevan Scaria.
brinda.darasha@lseg.com