Brookfield is in talks to buy the renewable energy provider for $6.5 billion

by Steve Goldstein

Canadian alternative investment giant Brookfield said it was in talks to buy a majority stake and then buy out French renewable energy provider Neoen.

Brookfield (BAM), its subsidiary Brookfield Renewable (BEP) and Singapore’s sovereign wealth fund Temasek are in exclusive talks to purchase a 53% stake in Neoen (FR:NEOEN), which is held by French entrepreneur Jacques Veyrat’s investment holding company, Fonds Stratégique de Participations, led by an alliance of seven French insurers financing French companies, and by Neoen’s president and CEO, Xavier Barbaro.

They are offering 39.85 euros per share, a 27% premium to Wednesday’s close, and will offer to buy out the entire company for the same price after purchasing the stake, valuing the company at 6.1 billion euros ($6.5 billion).

Neoen shares were retained on the Euronext stock exchange in Paris.

Brookfield is implementing the transaction through Brookfield Global Transition Fund II, which is co-chaired by former Bank of England Governor Mark Carney.

Neoen is a leading global renewable energy developer with an 8,000-megawatt portfolio of wind, solar and storage facilities operating or under construction in Australia, France and the Nordics. It operates the most powerful photovoltaic farm in France and the largest wind farm in Finland.

Revenue fell 8% in the first quarter, following strong early generation revenue last year from several power plants. It expects a return to growth over the next few quarters.

-Steve Goldstein

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30/05/24 0819ET