Masdar to acquire Saeta from Brookfield for AED 5 billion

Abu Dhabi Future Energy Company (Masdar) has announced the proposed acquisition of Saeta Yield from Brookfield Renewable, together with its institutional partners (Brookfield), for an implied enterprise value of AED 5.1 billion ($1.4 billion).

The transaction is subject to customary approvals and is expected to be completed 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, “Masdar is committed to accelerating the delivery of clean energy capacity across the Iberian Peninsula and Europe. 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.

Matching words with actions, 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.”

Since acquiring the business in 2018, Brookfield has worked closely with Saeta’s management team to 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.

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

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