June 13, 2024
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Brookfield to Buy Majority Stake in France’s Neoen

Canada’s Brookfield has on Thursday announced that it has together with Brookfield Renewable Partners and Singapore’s Temasek Holdings, entered into exclusive discussions to buy majority stake in French renewable power producer Neoen valuing it at around 6.1 billion euros ($6.6 billion). Bloomberg reported the announcement on Tuesdat, citing sources.

Asset manager Brookfield said it is in talks to buy a 53.32% stake for 39.85 euros per share from Neoen main shareholders, and then the remainder of the company at the same price, according to a joint statement by the companies.

The offer price was almost 27% higher than Neoen’s last closing price. Shares of Neoen closed at 31.40 euros on Wednesday, giving the company a market cap of about 4.8 billion euros.

“Brookfield’s offer implies an equity value for 100% of the shares of 6.1 billion euros,” Neoen said in a statement.

Brookfield and partners will buy a 42% stake in Neoen owned by French billionaire Jacques Veyrat’s Impala SAS and the balance from other shareholders of Neoen, an independent producer of renewable energy operating in 16 countries.

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Brookfield plans to make an all cash tender offer for the rest of Neoen at the same price and take it private once the majority stake purchase was completed, according to the statement.

“Our Board of Directors fully welcomes the transaction,” said Xavier Barbaro, Neoen’s chairman and CEO, in the statement.

Founded in 2008, Neoen has expanded to become one of the world’s biggest renewable energy companies with a portfolio in solar power, wind power and storage, according to its websites. Its capacity in operation and under construction stood at 8 GigaWatt, its websites showed.

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