Brookfield leading talks to buy renewable energy provider for $6.5 billion

By Steve Goldstein

Canadian alternative-investment giant Brookfield said it's leading talks to buy a majority stake, and then buy out, French renewable energy provider Neoen.

Brookfield (BAM), its mostly held Brookfield Renewable (BEP) unit and the Singapore sovereign wealth fund Temasek are in exclusive talks to buy a 53% stake in Neoen (FR:NEOEN) held by the investment holding company of French entrepreneur Jacques Veyrat, the Fonds Stratégique de Participations, run by an alliance of seven French insurers that finances French companies, and by Neoen's chairman and chief executive, Xavier Barbaro.

They're offering 39.85 euros per share, a 27% premium to Wednesday's close, and will offer to buy out the entire company at the same price once the block is purchased, which values the company at EUR6.1 billion ($6.5 billion).

Neoen shares were halted on the Euronext Paris exchange.

Brookfield is pursuing the transaction through the Brookfield Global Transition Fund II, co-headed by former Bank of England governor Mark Carney.

Neoen is a leading global renewables developer with an 8,000 megawatts portfolio of wind, solar and storage assets in operation or under construction in Australia, France and the Nordics. It operates France's most powerful solar farm and Finland's largest wind farm.

In the first quarter, revenue fell 8%, after significant early generation revenue last year from several power plants. It's expecting to return to growth over the next few quarters.

-Steve Goldstein

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05-30-24 0819ET

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