Masdar to acquire Greek renewables giant Terna Energy: UAE’s Masdar has reached a final agreement to purchase an initial 67% stake in Greece’s Terna Energy, with plans to present an allcash, mandatory offer to buy the remaining stakes once the transaction is completed, according to a statement released on Thursday. The shares are priced at EUR 20, valuing the company at EUR 3.2 bn.

The bigger picture: The move pushes Masdar closer to achieving its goal of 100 GW of global energy capacity by 2030, the statement says. Terna — the largest investor in Greece’s renewables sector — aims to achieve 6 GW operational renewables capacity by 2030 while its parent company Gek Terna is hoping to become a leader of diversified infrastructure in Greece and Southeast Europe.

Big acquisitions are the way to go for Masdar: Higher interest rates have “triggered a realization to the market that the valuation they were thinking of is not real,” in contrast to the high valuations people were expecting when interest rates were at zero or negative, Chief Executive Mohamed Jameel Al Ramahi told the Financial Times. In order to meet the company’s 100 GW goal, Masdar needs “to start thinking about making big acquisitions,” Al Ramahi added.

Not Masdar’s first Greek venture: Masdar and the Greek Ministry of Environment and Energy, signed an agreement in March to implement more projects under the GR-Eco Islands initiative which aims to accelerate the green transition of the Greek isles. Last December, Masdar also signed an agreement to collaborate on green infrastructure in Poros Island.

About Terna Energy: Terna Energy is a clean energy platform that specializes in financing, developing, constructing, and operating renewable energy facilities with emphasis on wind, solar, hydroelectric, and pumped storage projects, according to their website. It is the largest investor in Greece’s renewables sector.

Tags: