Abu Dhabi Future Energy Company (Masdar) has announced its intention to acquire Saeta Yield from Brookfield Renewable and its institutional partners for an estimated enterprise value of approximately $1.4 billion (EUR1.2 billion).
Transaction details
The completion of this transaction is contingent upon standard approvals and is anticipated to finalize by the end of 2024. Saeta Yield is recognized as a prominent independent developer, owner, and operator of renewable energy assets, with expertise spanning the entire value chain.
Asset portfolio
Moreover, the acquisition encompasses a portfolio of 745 megawatts (MW) of primarily wind energy assets, which includes 538 MW in Spain, 144 MW in Portugal, and 63 MW of solar PV assets in Spain, along with a development pipeline of 1.6 gigawatts (GW). The agreement excludes a regulated portfolio of 350 MW of concentrated solar power assets, which Brookfield will keep and oversee.
Commitment to renewable energy
Masdar is propelling its ambitious expansion strategy and aligns with the UAE Consensus ratified at COP28, aiming to triple renewable energy capacity by 2030, thereby facilitating a just and equitable energy transition.
Dr. Sultan bin Ahmed Al Jaber, UAE minister of Industry and Advanced Technology, chairman of Masdar, and COP28 president, expressed that Masdar is dedicated to accelerating the deployment of clean energy capacity throughout the Iberian Peninsula and Europe. He further noted that the transaction with Brookfield Renewable is one of Spain’s largest renewable energy deals and reflects Masdar’s robust growth trajectory. This landmark agreement, he indicated, underscores the company’s commitment to the EU’s broader net zero target by 2050 and aims to unlock new energy capacity.
Mohamed Jameel Al Ramahi, chief executive officer of Masdar, stated that with an operating capacity of 745 MW, primarily from wind assets, and a 1.6 GW development pipeline in Spain and Portugal, Saeta is an ideal addition to Masdar’s portfolio in Europe. He highlighted that this complements their recent partnership with Endesa for 2.5 GW of solar energy.
Since Brookfield’s acquisition in 2018, they have worked closely with Saeta’s management. Their business strategy focuses on divesting non-core entities and optimizing capital structures. They further aim to position the company for growth through hybridization, repowering, greenfield projects, and strategic acquisitions.
Enhancing market presence
Moreover, this sale is consistent with Brookfield Renewable’s strategy of asset rotation to recycle capital for growth initiatives. Additionally, the deal enhances Masdar’s presence in the Iberian market by acquiring a robust renewable platform, backed by a strong operational portfolio and management team, with significant growth prospects that support Masdar’s goal of reaching 100 GW by 2030.
Advisory teams
Furthermore, Masdar has engaged Citigroup Global Markets Limited as its transaction advisor, Linklaters as its legal advisor, UL for technical advice, and KPMG for financial and tax advisory services. In addition, Brookfield has selected Santander and Société Générale as its transaction advisors, with Uría Menéndez acting as legal counsel, G-Advisory offering technical support, and KPMG serving as its tax advisor.
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