Masdar to take over Terna Energy in deal worth EUR 3.2 billion

Energy giant Masdar, headquartered in the United Arab Emirates, made a major step in its push to expand in Greece and Europe by agreeing to buy Terna Energy. The deal gives the target company an enterprise value of EUR 3.2 billion.

Abu Dhabi Future Energy Co. – Masdar reached a definitive agreement with GEK Terna and other shareholders of Terna Energy to acquire 67% of the company’s outstanding shares for EUR 20 apiece. After the completion of the transaction, Masdar will launch an all-cash mandatory tender offer to acquire all the remaining outstanding shares of Terna Energy with the intention of reaching 100%, according to the announcement.

The deal values the Greek company’s total equity at EUR 2.4 billion, with an enterprise value of EUR 3.2 billion, making it the largest-ever energy transaction on the Athens Stock Exchange. The agreement implies a dividend distribution of EUR 0.38 per share. Enterprise value includes debt and minority interests.

Masdar to keep Terna Energy’s leadership

Terna Energy’s Executive Chairman Georgios Peristeris and Chief Executive Officer Emmanuel Maragoudakis will continue in their current roles after the acquisition by Masdar, the companies said.

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 realizing one of the central goals of the UAE Consensus, to triple global renewable energy capacity by 2030, said Chairman of Masdar Sultan Al Jaber. He is also the UAE’s minister of industry and advanced technology as well as the group CEO of Abu Dhabi National Oil Co. (Adnoc).

Terna Energy is expected to play an important role in the growing portfolio in Greece and Europe, Masdar’s CEO Mohamed Jameel Al Ramahi revealed.

Two major pumped storage projects underway in Greece

Established in 1997, Terna Energy specializes in financing, developing, constructing and operating renewable energy facilities, focused on wind, solar, hydroelectric and pumped storage projects.

Also known as Tenerg, it is the largest wind power operator in Greece, with more than 1 GW in capacity.

Terna Energy aims to reach 6 GW in operational renewable energy capacity by the end of the decade

The company expects to complete its Amfilochia pumped storage power plant next year. It has the status of a project of common interest in the European Union. Terna Energy is also developing a hybrid power plant in Crete including a pumped storage hydropower plant.

It recently adopted a growth plan targeting 6 GW in operational renewable energy capacity by 2030.

According to Greek media reports, asset management firm First Sentier Investors was close in late 2022 to agreeing to take over Terna Energy.

Masdar contributing to energy independence investment in Poros island

In December, Masdar joined Greece’s GR-Eco Islands initiative, within which it is participating in the transformation of Poros. The utility is building 7 MW of photovoltaics and participating in the greening of the local vehicle fleet.

The project includes decarbonizing the island’s maritime transportation with a fully electric ferry, and the conversion of existing small traditional passenger boats to electric vessels. Poros is also working on a zero waste model.

Strategic partnerships in Egypt, Azerbaijan, Romania

Masdar is owned by state-controlled Abu Dhabi National Energy Co. (Taqa), Mubadala Investment Co. and Adnoc. It has more than 20 GW worldwide in green energy facilities in operation.

The UAE’s green energy powerhouse targets 100 GW in global capacity by 2030. Masdar’s projects include the installation of carbon dioxide storage facilities in the Middle East and floating solar power plants in Central Asia, as well as the recently commissioned 2 GW Al Dhafra solar park in the UAE.

In Southeastern Europe, Masdar is also active through the Masdar Taaleri joint venture. It won a market premium in August for its Čibuk 2 project in Serbia at the country’s first wind power auction. The operator’s Čibuk 1 facility is the largest in the country.

Masdar is owned by Taqa, Mubadala and Adnoc

Masdar broke ground earlier this month in Azerbaijan on two solar parks and a wind farm. It is building them in partnership with the State Oil Company of Azerbaijan, SOCAR.

The list goes on. The energy giant has launched major partnerships with Romania’s Hidroelectrica and France-based Engie as well as with Copelouzos Group, which is developing a project for an undersea electric interconnection between Greece and Egypt.

Update: Option for GEK Terna to buy 50% of Amfilochia, other projects

Masdar will have the right to sell 50% of the Amfilochia project to GEK Terna nine months after the closing of the transaction, Energypress reported from a press conference that Executive Chairman Georgios Peristeris held following the announcement.

Terna Energy’s current parent holding will have the right to purchase 50% of its participation in hydroelectric, offshore wind and other pumped storage investments of 3 GW in overall capacity, also nine months after the acquisition is completed, the article adds.