Brookfield Powers Up: Eyes Major Stake In Neoen With A Bold Acquisition Bid

Zinger Key Points
  • Brookfield Asset Management, with partners, plans to acquire a 53.32% stake in Neoen at EUR 39.85 per share, a 26.9% premium.
  • The offer values Neoen's equity at EUR 6.1B ($6.6B); regulatory approvals expected by Q4 2024, tender offer in Q1 2025.

Brookfield Asset Management Inc BAM, together with its institutional partners, including Brookfield Renewable Partners L.P. BEP and Temasek, through a special purpose vehicle, inked an exclusive negotiation to acquire a 53.32% shareholding in Neoen NOSPF for EUR 39.85 per share.

Brookfield has entered into exclusive negotiations with Impala, the Fonds Stratégique de Participations managed by ISALT, Cartusiai and Xavier Barbaro, and other shareholders.

Neoen is a global renewables developer with an 8,000 megawatt portfolio of wind, solar and storage assets in operation or under construction alongside a significant 20,000 megawatts advanced pipeline of development projects, located in strategic markets, particularly in Australia, France and the Nordics. 

The acquisition price represents a 26.9% premium over the last closing price and premia of 40.3% and 43.5% over the 3 and 6-month volume-weighted average price, respectively.

Neoen’s Board, in a meeting on May 29, unanimously welcomed the proposed transaction.

The offer implies an equity value of 100% of the shares of EUR 6.1 billion ($6.6 billion). The company expects to obtain regulatory approvals by the fourth quarter of 2024 and launch a tender offer in the first quarter of 2025.

Subject to the closing of the block acquisition, Brookfield would file an all-cash mandatory tender offer for all of the remaining shares and outstanding convertible bonds in Neoen with the intention of implementing a squeeze out.

The growth of AI and cloud computing continues to drive higher demand for renewable sources of power, as typified by Brookfield’s recent agreement to supply Microsoft Corporation MSFT with over 10,500 megawatts of renewable power, as per the company’s statement.

As of March-end, BAM had cash and cash equivalent of $2.6 billion.

Price Action: BAM shares are up 2.79% at $39.40 at the last check Thursday.

Image sourced from Shutterstock

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