Masdar to Acquire Majority Stake in Greek’s TERNA ENERGY

In one of the largest ever energy transaction on Athens Stock Exchange, Abu Dhabi Future Energy Company (Masdar), the UAE’s clean energy leader, on Thursday said that it has reached an agreement with GEK TERNA SA and other shareholders of TERNA ENERGY SA, to acquire initially 67% of the company’s outstanding shares for $2.79 billion, subject to regulatory approvals and other conditions.

After completion of the transaction, Masdar will launch an all-cash mandatory tender offer to acquire all the remaining outstanding shares of the company with the intention of reaching 100%, the company said in a disclosure with Abu Dhabi Securities Exchange (ADX) this morning.

The transaction and subsequent offer values TERNA ENERGY’s total equity at $2.79 billion with an enterprise value of $3.44 billion. The deal is also one of the largest in the European renewables market.

The deal is expected to provide significant capital investment in Greece and other European countries, supporting TERNA ENERGY’s contribution to Greece’s National Energy and Climate Plan (NECP) and the EU’s net zero by 2050 target.

The proposed acquisition demonstrates the scale and ambition of Masdar’s growth plans in the region, and further solidifies Masdar’s role as a trusted global energy transition partner to governments, investors, developers and communities across the globe.

Established in 1997, TERNA ENERGY is a leading European clean energy platform, with a track record of more than 25 years of delivering innovative and sustainable projects. The company specialises in financing, developing, constructing and operating renewable energy facilities, focused on wind, solar, hydroelectric and pumped storage projects.

The company has recently announced its growth plan targeting renewable energy operational capacity of 6 GW by 2030. With a strong portfolio of projects in Greece and Europe, TERNA ENERGY is the largest investor in the renewables energy sector in Greece.

Masdar’s Portfolio Grows

The proposed acquisition is expected to play an important role in growing Masdar’s portfolio in Europe as it targets 100 GW global capacity by 2030. It also reflects Masdar’s confidence in TERNA ENERGY’s growth potential, as well as the strength of the Greek market and its renewables sector.

The transaction is aligned with GEK TERNA’s strategy of becoming the leading diversified infrastructure group in Greece and Southeast Europe and will accelerate the Group’s path to a new growth era.

TERNA ENERGY’s Executive Chairman, Georgios Peristeris, and CEO Emmanuel Maragoudakis, will continue in their current roles following completion of the transaction and support Masdar in leading the company in its next phase of growth.

Major Milestone

Dr Sultan Al Jaber, the UAE’s Minister of Industry and Advanced Technology and Chairman of Masdar said that the deal marks a major milestone in Masdar’s strategy to expand its portfolio to 100 GW of clean energy by 2030 and it will make a substantial contribution to the renewable energy capacity of Greece.

As one of Europe’s biggest renewable energy transactions in 2024, this investment reflects the UAE’s clear commitment to Greece and Europe’s clean energy development and it represents another major practical step in realising one of the central goals of the UAE Consensus, to triple global renewable energy capacity by 2030, he averred.

“In short, this deal underlines the smart growth opportunities of a responsible and orderly energy transition stimulating new industries, new jobs and low carbon economic development,” the UAE Minister said.

Masdar CEO Mohamed Jameel Al Ramahi said that they were injecting capital and global expertise to accelerate TERNA ENERGY’s expansion, supporting Greece’s renewable energy ambitions and extending Masdar’s global reach.

Georgios Peristeris, Chairman and CEO of GEK TERNA, and Executive Chairman of TERNA ENERGY, said that the agreement is a recognition of the great value of TERNA ENERGY and the result of the hard work of hundreds of people for more than 25 years.

At the same time, it marks the beginning of a new era of even greater growth for GEK TERNA Group. It is also a strong vote of confidence for Greece and its prospects. TERNA ENERGY is the leading RES investor in Greece and a key pillar of the national effort to transition to a future with cleaner and cheaper energy for all, Peristeris added.