BROOKFIELD Asset Management, together with its institutional partners Brookfield Renewable and Temasek, have proposed to purchase a remaining 53.32 per cent stake in Neoen for 39.85 euros (S$58.19) per share.
Neoen is a renewable energy developer headquartered in Paris, with an 8,000 megawatts (MW) portfolio of wind, solar and storage assets in operation or under construction.
The company also has a 20,000 MW advanced pipeline of development projects, and is currently 42.15 per cent-owned by independent energy specialist Impala.
Following the block acquisition of Neoen, Brookfield Renewable is also purchasing Neoen’s outstanding convertible bonds at the same offer price through a mandatory cash offer tender.
Brookfield will purchase Neoen through Brookfield Global Transition Fund II, its flagship vehicle for investments to accelerate the global transition to a net-zero economy.
As the largest investor in the fund, Brookfield Renewable is expecting to invest up to 500 million euros in the Neoen acquisition.
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The all-cash mandatory tender offer implies an equity value of 6.1 billion euros for 100 per cent of the shares in Neoen, said both companies on Thursday (May 30).
The price also represents a 26.9 per cent premium over Neoen’s last closing price. It is 40.3 per cent and 43.5 per cent higher than the stock’s three-month and six-month volume-weighted average prices, respectively.
Neoen said its board of directors “unanimously welcomed” Brookfield’s proposal.
Xavier Barbaro, Neoen’s chairman and CEO, said he sees Brookfield as the company’s “partner of choice to preserve the structure and identity of Neoen in the best interests of its employees and its stakeholders.”
Impala founder and president, Jacques Veyrat, said: “Impala is delighted to sell the control of Neoen to Brookfield, a responsible actor and world leader in the renewable energy market.”
“With the financial backing of this new shareholder (Brookfield) and the talent of Xavier Barbaro and his teams, Neoen will be able to continue its growth trajectory,” he added.
