Abu Dhabi Future Energy Company PJSC, known as Masdar, has announced its intent to acquire Saeta Yield from Brookfield Renewable for an estimated enterprise value of approximately $1.4 billion (€1.2 billion).
The acquisition, subject to customary regulatory approvals and expected to close by the end of 2024, paves the way for Masdar to expand its renewable energy portfolio in the Iberian Peninsula.
Saeta is recognised as a major independent developer, owner, and operator of renewable power assets, boasting capabilities across the entire energy value chain.
The transaction involves a mega portfolio of 745 megawatts (MW) of predominantly wind assets, comprising 538MW in Spain, 144MW in Portugal, and 63MW of solar photovoltaic (PV) assets in Spain.
It also includes a substantial 1.6 gigawatt (GW) development pipeline. The agreement excludes a regulated portfolio of 350MW of concentrated solar power assets, which Brookfield will retain and continue to operate.
Brookfield Renewable has successfully executed a business strategy focused on enhancing Saeta’s value since acquiring the company in 2018. This involved divesting non-core assets, optimising its capital structure, and positioning the company for growth through various strategies, including hybridisation, repowering, greenfield development, and opportunistic acquisitions.
The sale is aligned with Brookfield’s asset rotation strategy, aimed at recycling capital to fuel further growth initiatives.
“This landmark acquisition not only enhances our existing footprint in one of Europe’s largest renewable markets but also aligns with Masdar’s ambitious growth objectives,” said Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar.
“With Saeta’s operating capacity of 745MW and its substantial development pipeline, this acquisition is a strategic addition to our portfolio, reinforcing our commitment to reaching a global renewable energy capacity of 100GW by 2030.”
Masdar’s expansion in Spain and Portugal signals its dedication to accelerating the energy transition across Europe.
This acquisition represents one of the largest renewable energy transactions in the region, further solidifying Masdar’s position as a key player in the renewable sector.
Recently, Masdar also announced a partnership with Endesa for 2.5GW of renewable energy assets in Spain, underscoring its strategic intent to bolster its presence in the Iberian market.
“This deal exemplifies our commitment to supporting the EU’s broader net-zero goals by 2050. We are eager to unlock new clean energy capacity in the Iberian Peninsula, aligning with the UAE’s ambition to triple renewable energy capacity by 2030,” said Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Chairman of Masdar, highlighting the importance of the acquisition.
Mark Carney, Chair and Head of Transition Investing at Brookfield, expressed optimism about the transaction, underlining the ongoing partnership between Masdar and Brookfield. “As leaders in clean energy development, we are confident that this transaction will further accelerate the transition toward a net-zero economy,” he noted.
Connor Teskey, Chief Executive Officer of Brookfield Renewable Partners, reflected on the successful partnership with Saeta, praising its strong management team and development pipeline. “We are excited to hand over the reins to Masdar, which is well-positioned to continue delivering incremental renewable energy to the region,” he said.
Álvaro Pérez de Lema, Chief Executive Officer of Saeta, expressed enthusiasm for the transition. “After years of profitable growth with Brookfield, we are eager to embark on a new chapter with Masdar. Together, we aim to further solidify Saeta’s leadership position as a renewable energy producer in Iberia,” he stated.
Masdar engaged several advisors to facilitate the transaction. Citigroup Global Markets Limited acted as its transaction advisor, while Linklaters served as the legal advisor. UL provided technical advisory, and KPMG was engaged for financial and tax advisory services.
Brookfield retained Santander and Société Générale as transaction advisors, alongside Uría Menéndez as its legal advisor, G-Advisory as its technical advisor, and KPMG for tax advisory.
