TotalEnergies SE TTE penned a deal with the national oil and gas company PTTEP in Thailand for divestiture of a 25.5% equity stake in the Seagreen offshore wind farm for £522 million ($689 million).
The deal implies an enterprise value of $4.3 billion (100%), equivalent to a multiple of 13 times the expected average EBITDA over the next 5 years, depending on future market prices.
The transaction is at par with TTE's renewables business model. Post deal closure, TTE will have a 25.5% stake in Seagreen, while PTTEP will have 25.5% and SSE Renewables 49%.
Seagreen wind farm, which has a total capacity of 1,075 MW, is the world's deepest fixed-bottom wind farm and has 114 turbines capable of offering enough electricity to power over 1.6 million homes (equivalent to two-thirds of all homes in Scotland).
Apart from the sale deal, TTE and PTTEP penned a Memorandum of Understanding to explore joint opportunities for the development of renewable energies.
Patrick Pouyanné, Chairman and CEO of TotalEnergies, said, "This transaction is a new milestone in the implementation of our transition strategy and will contribute to reaching our 12% profitability target in Integrated Power business."
The transaction is projected to be complete following receipt of applicable governmental and regulatory approvals.
Also See: TotalEnergies' Texas Solar Power: Strikes 275 MW Green Electricity Deal With LyondellBasell
Price Action: TTE shares closed higher by 1.79% at $68.40 on Thursday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
