Terna Energy Acquisition: Key Details, Impact, and What Comes Next

Masdar's acquisition of Terna Energy marks a significant milestone in the renewable energy sector. By purchasing 70% of Terna Energy's shares, Masdar aims to bolster its renewable energy capacity in Greece and Eastern Europe. This €3.2 billion deal is the largest energy transaction on the Athens Stock Exchange, underscoring its importance in the EU renewables industry.

What Is Terna Energy?

Founded in 1997, Terna Energy specializes in wind energy, hydroelectric projects, pumped storage, hybrid projects, solar energy, and biogas projects. As the largest investor in the renewable energy sector in Greece and the biggest Greek company in this field worldwide, Terna Energy stands out with its strong portfolio of projects both domestically and internationally. The company's recent acquisition by Masdar underscores its ambitious growth plan targeting 6GW renewable energy operational capacity by 2029.

Who Acquired Terna Energy?

Masdar, a clean energy pioneer based in the UAE, plays a crucial role in the global energy transition. The company is one of the world's largest investors in renewable energy, with a significant global footprint supporting over 40 countries. Masdar's key products and services include utility-scale renewable energy projects, green hydrogen development, and strategic initiatives like Abu Dhabi Sustainability Week and the Zayed Sustainability Prize. Its influence is marked by its commitment to sustainability and the UAE's Net Zero by 2050 strategic initiative.

When Was Terna Energy Acquired?

Masdar completed the acquisition of Terna Energy on November 28, 2024. This strategic move aligns with Masdar's broader goal of achieving 100GW global capacity by 2030. The timing of the acquisition is significant as it coincides with a period of rapid growth in the renewable energy sector, marked by increasing investments in wind, solar, and hydro technologies. This deal also represents the largest energy transaction on the Athens Stock Exchange, highlighting its importance in the EU renewables industry.

Why Was Terna Energy Acquired?

• Market Expansion: Masdar's acquisition of Terna Energy is a strategic move to enhance its market presence in Greece and Eastern Europe. This acquisition will help Terna Energy target 6GW of renewable energy operational capacity by 2029, supporting Masdar's broader goal of achieving 100GW global capacity by 2030.
• Technology Integration: Terna Energy operates a diversified portfolio of renewable energy projects, including wind, solar, biomass, and hydro technologies. The acquisition allows Masdar to integrate these technologies into its existing operations, leveraging Terna Energy's expertise in large-scale projects like the 680MW Amfilochia pumped hydro project.
• Competitive Advantage: The acquisition positions Masdar as a majority shareholder in Terna Energy, bringing long-term capital and global expertise to enhance Terna Energy's growth. This strategic move strengthens Masdar's portfolio in Europe, providing a competitive edge in the global clean energy market and supporting its ambitious renewable energy targets.

Acquisition Terms

• Acquisition Price: The acquisition price is €20 per share, valuing Terna Energy at an enterprise value of €3.2 billion.
• Payment Method: The transaction involves an all-cash mandatory tender offer (MTO) to acquire the outstanding shares of Terna Energy.
• Key Conditions or Agreements:
  • Masdar has acquired 70% of the outstanding shares of Terna Energy.
  • Masdar will seek regulatory approvals from the Hellenic Capital Markets Commission (HCNC) for the launch of an all-cash mandatory tender offer to acquire the remaining shares.
  • The acquisition aims to support Terna Energy's growth plans, targeting 6GW of renewable energy operational capacity by 2029.
  • The acquisition will contribute to Masdar's goal of achieving 100GW global capacity by 2030.
  • Masdar has retained Rothschild & Co. as sole financial advisor, and Simmons & Simmons, Bernitsas Law, Latham & Watkins as legal advisors.
  • GEK Terna Group was supported by Reed Smith LLP and Potamitis Vekris as legal advisors, and Morgan Stanley as the sole financial advisor to Terna Energy.

Impact on Terna Energy

The acquisition of Terna Energy by Masdar brings significant changes to the company's operations and management. Masdar, now the majority shareholder, will work closely with Terna Energy's existing leadership, including Executive Chairman Georgios Peristeris and CEO Emmanuel Maragoudakis, ensuring continuity in management. This collaboration aims to leverage Masdar's global expertise and capital to support Terna Energy's ambitious growth plans, targeting 6GW of renewable energy capacity by 2029. The integration of Masdar's strategic initiatives is expected to enhance operational efficiency and drive innovation in Terna Energy's projects.

In terms of product offerings and services, the acquisition will bolster Terna Energy's portfolio, particularly in wind, solar, biomass, and hydro technologies. This expansion aligns with Masdar's goal of achieving 100GW global capacity by 2030. While specific reactions from employees and customers are not detailed, the strategic move is anticipated to foster a positive outlook among stakeholders, given the enhanced growth prospects and stability. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly, ensuring a smooth and efficient transition.