Brookfield enters exclusive talks to acquire Neoen for EUR 6.1 billion | News

Brookfield is partnering with Singaporean conglomerate Temasek to acquire global renewable energy developer Neoen in a deal valued at €6.1 billion.

A second global energy transition fund Brookfield and Temasek are in talks to acquire a 53.32% stake in Neoen from investors including Impala and an alliance of seven major French insurers supporting Fonds Stratégique de Participations (FSP), as well as Neoen chairman and CEO Xavier Barbaro .

FSP is managed by ISALT and is an alliance of seven French insurers: BNP Paribas Cardif, CNP Assurances, Crédit Agricole Assurances, Groupama, BPCE Assurances, Société Générale Assurances and Suravenir.

Brookfield said that if the offer of EUR 39.85 per share is successful, it plans to make an all-cash mandatory tender offer for all remaining shares and issued convertible bonds, which will value Neoen at EUR 6.1 billion.

Brookfield’s renewables division, the largest investor in Brookfield Global Transition Fund II, expects to invest up to €500 million in the acquisition, which will be financed from available liquidity.

Founded in 2008 and headquartered in France, Neoen has expertise in solar, wind and storage. Neoen’s flagship operations are a 300 MWp solar farm in Cestas, France; The largest wind farm in Finland with a capacity of 404 MW in Mutkalampi; the 375 MWp El Llano solar plant in Mexico; and the large-scale Hornsdale Power Reserve and Victorian Big Battery storage plants in Australia.

Acquiring Neoen would provide exposure to key renewable energy markets and expertise in battery storage, said Connor Teskey, chief executive of Brookfield’s renewable energy and transformation business. Brookfield said it wants to accelerate Neoen’s growth and strengthen its position as a global leader in renewable energy.

Neoen’s board unanimously accepted Brookfield’s proposal, which represents a 27% premium to the last closing share price, the manager added.

Teskey said: “Under the Impala umbrella, Neoen has built one of the world’s largest renewable energy development platforms. We are excited to leverage Brookfield’s expertise, track record and access to capital to further accelerate Neoen’s growth while maintaining its culture and identity.

“The acquisition of Neoen further strengthens Brookfield’s global scale while diversifying into key renewable energy markets and expanding its expertise in battery storage technologies. We look forward to working with management to scale the business to meet the growing demand for clean energy we are seeing.”

Barbaro said: “After 15 years of successful and profitable growth with Impala as our key shareholder, we are excited to open a new chapter in the Neoen story with the arrival of Brookfield as our new majority shareholder. We look forward to developing a strong relationship with Brookfield that will take Neoen into its next phase of growth, further strengthening its leadership position as an independent renewable energy producer and one of the most dynamic in the world.”

“Our board fully welcomes this transaction and views Brookfield as the partner of choice to help preserve Neoen’s structure and identity in the best interests of its employees and stakeholders.”

Jacques Veyrat, founder and president of Impala, added: “Impala is delighted to sell control of Neoen to Brookfield, a responsible actor and global leader in the renewable energy market.”

Nicolas Dubourg, managing director of FSP and president of ISALT, said: “We are extremely proud of the way Neoen has grown since its IPO. Driven by a relentless focus on profitable growth, operational discipline and an open mindset, and a full focus on renewable energies, Neoen is a best-in-class company in its industry.

“FSP’s strategy is to remain committed to financing the energy transition. (We) have been with Neoen since its IPO in 2018 and have subsequently supported capital increases to finance the increase in the company’s installed capacity.

“The proposed operation demonstrates how long-term investments in innovative French companies led by talented and experienced managers, aimed at identifying international leaders, can generate significant impact on a global scale.”

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