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Masdar to acquire Saeta from Brookfield for $1.4 billion

Closing of the transaction is expected to occur around the end of 2024

Abu Dhabi Future Energy Company (Masdar) on Monday announced the proposed acquisition of Saeta Yield from Brookfield Renewable, together with its institutional partners (Brookfield), for an implied enterprise value of $1.4 billion.

Closing of the transaction is subject to customary approvals and is expected to occur around the end of 2024.

Saeta is a leading independent developer, owner and operator of renewable power assets with capabilities across the entire value-chain.

The transaction consists of a portfolio of 745 megawatts (MW) of predominantly wind assets — 538MW of wind assets in Spain, 144MW of wind assets in Portugal and 63MW solar PV assets in Spain — and includes a 1.6 gigawatt (GW) development pipeline. The transaction excludes a regulated portfolio of 350MW of concentrated solar power assets, which Brookfield will retain and continue to operate.

Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, Chairman of Masdar and COP28 President, said, “Representing one of Spain’s largest renewable energy transactions, this landmark deal with Brookfield Renewable builds on Masdar’s strong growth story, demonstrating our commitment to the EU’s wider net zero by 2050 target and unlocking new capacity. Masdar is further accelerating its ambitious growth plans, as well as supporting the delivery of the UAE Consensus ratified at COP28, to triple renewable energy capacity by 2030, enabling a just, orderly and equitable energy transition.”

Mark Carney, chair and head of transition investing at Brookfield, said: “We are thrilled to conclude this important transaction with Masdar. As global leaders in clean energy development, Brookfield and Masdar will continue to be important players to accelerate the journey towards a net-zero economy.”

Since acquiring the business in 2018, Brookfield has worked closely with Saeta’s management team to successfully execute a business plan focused on divesting non-core assets, optimising its capital structure, and positioning the business for growth through hybridisation, repowering, greenfield development and accretive tuck-in opportunities.

The sale is in line with Brookfield Renewable’s asset rotation strategy to recycle capital to fund growth activities.

Mohamed Jameel Al Ramahi, chief executive officer of Masdar, said: “With an operating capacity of 745MW of predominantly wind assets, and a 1.6GW development pipeline in Spain and Portugal, Saeta is a perfect complement to Masdar’s portfolio in Europe, following our recent partnership with Endesa for 2.5GW of solar energy. This deal consolidates our footprint in the Iberian market by acquiring a well-established renewable platform, with a strong operational portfolio and management team, and tangible near-term and long-term growth opportunities, supporting Masdar’s expansion plans to reach 100GW by 2030.”

Connor Teskey, chief executive officer of Brookfield Renewable Partners, commented: “We are pleased to have successfully supported Saeta throughout our ownership, having worked closely with the business to scale and optimise its renewable portfolio across Iberia. The company has a strong development pipeline and a top-tier management team, and is well positioned to continue delivering incremental renewable energy to the region over the coming years under Masdar’s sponsorship.”

Álvaro Pérez de Lema, chief executive officer of Saeta, said: “After more than six years of successful and profitable growth with Brookfield, we are very excited to open a new chapter in Saeta’s history with the arrival of Masdar as the new controlling shareholder. We look forward to working with Masdar to take Saeta to the next phase of its growth story, further consolidating its leadership position as an independent producer of renewable energy in Iberia.”

Masdar has retained Citigroup Global Markets Limited as its transaction adviser, Linklaters as legal adviser, UL as technical adviser and KPMG as its financial and tax adviser.

Brookfield retained Santander and Société Générale as its transaction advisers, Uría Menéndez as legal adviser, G-Advisory as technical adviser and KPMG as its tax adviser.