Masdar Completes Major Acquisition of TERNA ENERGY to Boost Growth in Greece and Eastern Europe

Masdar Completes Major Acquisition of TERNA ENERGY

In a significant move aimed at strengthening its foothold in renewable energy, Masdar, the Abu Dhabi Future Energy Company, has successfully acquired 70% of TERNA ENERGY's outstanding shares. This acquisition allows Masdar to become the majority shareholder of the Greek clean energy champion and marks the largest energy transaction ever recorded on the Athens Stock Exchange, valued at €3.2 billion.

Masdar announced this milestone on November 28, 2024, alongside its ambitious plans to enhance renewable energy capacities in Greece and Eastern Europe. The company aims for a massive operational capacity of 6 gigawatts (GW) by 2029, a leap forward in supporting the energy transition in these regions.

The acquisition comes with regulatory approvals from the Hellenic Capital Markets Commission, and Masdar now seeks to launch an obligatory cash public offering for the remaining shares of TERNA ENERGY. This strategic move underscores Masdar’s commitment to both long-term capital investment and global expertise, which are crucial for accelerating TERNA ENERGY's growth plans.

TERNA ENERGY's Role in Renewable Energy

For over two decades, TERNA ENERGY has been a vital player in the renewable energy sector, boasting the largest and most diversified project portfolio in Greece. With operations extending into Bulgaria and Poland, TERNA ENERGY has been pivotal in advancing clean energy. Their current operational capacity stands at 1.2 GW, with plans to scale up significantly.

Among its key projects is the Amfilochia pumped storage hydropower project, which, upon completion, will be one of the largest of its kind in Europe, adding 680 MW to its portfolio. The company engages in various renewable technologies, including wind, solar, biomass, and hydroelectric power, reinforcing its position as a leader in Greece’s energy market.

Statements from Masdar Executive Team

Masdar's CEO, Mohamed Jameel Al Ramahi, expressed pride in becoming the majority shareholder of TERNA ENERGY. He emphasized the synergies between the two companies to create significant growth opportunities while furthering Greece’s renewable energy objectives. His remarks highlight Masdar’s strategic approach, which goes beyond mere acquisition of assets to investing in exceptional teams, aiming to establish TERNA ENERGY as a pivotal platform for regional expansion.

On the other hand, Georgios Peristeris, the Chairman and CEO of GEK TERNA, remarked that this agreement with Masdar aligns perfectly with TERNA ENERGY's long-standing commitment to green energy leadership in Greece and Southeast Europe. He emphasized the potential for growth under Masdar’s stewardship, which shares a vision of clean, affordable, and domestically produced energy.

Future Perspectives

Looking ahead, Masdar is targeting a renewable energy capacity of 100 GW globally by 2030, positioning itself as a key player in the energy transition worldwide. This acquisition solidifies its commitment to sustainability and its role in supporting renewables across various global markets.

Masdar has enlisted Rothschild & Co. as its exclusive financial advisor, with Simmons & Simmons and Latham & Watkins providing legal counsel for this transaction. TERNA ENERGY also received advisory support from Morgan Stanley and local counsel from Potamitis Vekris.

As the clean energy sector evolves, this acquisition not only highlights the growing importance of renewable energy initiatives globally but also positions both Masdar and TERNA ENERGY at the forefront of efforts to meet emerging energy demands and sustainability goals in the coming years.