Brookfield Asset Management is in exclusive negotiations to acquire a majority share in Neoen, intending to launch a takeover bid that would value the French renewable energy company at €6.1bn ($6.6bn).
The Canadian investment manager is considering purchasing a 53.3% stake at €39.85 per share, reflecting a 26.9% premium on Neoen's last closing price in Paris.
The acquisition discussions involve Brookfield, Brookfield Renewable Partners and Singapore's Temasek Holdings.
The consortium aims to buy the 42% held by French billionaire Jacques Veyrat's Impala and additional shares from other Neoen shareholders.
Brookfield plans to extend an all-cash tender offer for the remaining Neoen shares at the same price post-acquisition.
The takeover could occur in the first quarter of 2025, subject to regulatory clearances, to privatise the company.
Neoen's board has unanimously expressed support for the proposed offer.
Founded in 2008 by Impala, Neoen operates across 16 countries with 8GW of portfolio in operation and under construction and aims to achieve 10GW by 2025. Its revenue for 2023 stood at €524.4m.
The company has secured substantial funding for its expansion through a 2018 initial public offering and subsequent share sales.
Neoen has been exploring the sale of a stake in its Australian division to finance further regional growth.
Brookfield Asset Management renewable power and transition CEO Connor Teskey stated: “Under Impala’s sponsorship, Neoen has built one of the world’s greatest renewable energy development platforms.
“We are excited to build on Brookfield’s expertise, track record and access to capital to further accelerate Neoen’s growth while preserving its culture and identity. Acquiring Neoen further strengthens Brookfield’s global scale, while diversifying into key renewables markets and adding expertise in battery storage technology.
“We look forward to partnering with management to scale up the business to meet the growing demand for clean power.”
The deal would be among Europe's most significant private acquisitions in 2024.
In March, American private equity investor KKR agreed to acquire a majority stake in Avantus, a US-based developer of utility-scale solar and solar-plus-storage projects.
KKR and its existing investor EIG will become the only equity investors in Avantus.
