ENERGY STORAGE

Brookfield launches €6.1bn takeover bid for storage developer Neoen

June 3, 2024

Renewable energy developer Brookfield has entered into exclusive negotiations with Impala and other shareholders to acquire a majority stake in energy storage developer Neoen and launch a mandatory tender offer for 100 per cent of the company.

Other shareholders involved in the negotiations include the Fonds Stratégique de Participations managed by ISALT, Cartusiai and Xavier Barbaro. Brookfield is proposing to acquire approximately 53.32% of the outstanding shares of Neoen at a price of 39.85 euros per share.

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-months volume-weighted average price respectively.

Brookfield’s offer implies an equity value for 100 per cent of the shares of €6.1 billion.

Subject to 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,” a Brookfield statement said.

The Neoen Board of Directors has unanimously welcomed Brookfield’s proposal and has appointed Finexsi as independent expert adviser for the board of directors of Neoen.

Connor Teskey, CEO, renewable power & transition at Brookfield Asset Management, said: “Under Impala’s sponsorship, Neoen has built one of the world’s greatest renewable energy development platforms. We are excited to build on Brookfield’s expertise, track-record and access to capital to further accelerate Neoen’s growth while preserving its culture and identity. Acquiring Neoen further strengthens Brookfield’s global scale, while diversifying into key renewables markets and adding expertise in battery storage technology. We look forward to partnering with management to scale-up the business to meet the growing demand we are seeing for clean power.”

Jacques Veyrat, founder and president at Impala said: “Impala is delighted to sell the control of Neoen to Brookfield, a responsible actor and world leader in the renewable energy market. Impala created Neoen 15 years ago and have since then supported every stage of its development in France and then internationally, with outstanding success in Australia. With the financial backing of this new shareholder and the talent of Xavier Barbaro and his teams, Neoen will be able to continue its growth trajectory.”

Xavier Barbaro, Neoen’s chairman and CEO, added: “After 15 years of successful and profitable growth with Impala as our key shareholder, we are thrilled to open a new chapter in Neoen’s history, with the arrival of Brookfield as our new majority shareholder. We look forward to developing a strong relation with Brookfield that will take Neoen to the next phase of its growth story, further consolidating its leadership position as an independent producer of renewable energy, and one of the most dynamic globally. Our Board of Directors fully welcomes the transaction and sees Brookfield as a partner of choice to preserve the structure and identity of Neoen in the best interests of its employees and its stakeholders.”

 

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