Together with its institutional partners, Abu Dhabi Future Energy Company (Masdar) has disclosed its plans to purchase Saeta Yield from Brookfield Renewable for an estimated enterprise value of AED 5.1 billion ($1.4 billion).
Transaction Information and Schedule
The deal is expected to close by the end of 2024, subject to customary regulatory approvals.
The Renewable Energy Portfolio of Saeta Yield
One well-known independent developer, owner, and operator of renewable energy is Saeta Yield. It oversees the whole value chain of a portfolio of renewable energy projects.
Renewable Energy Resources in Portugal and Spain
A 745 megawatt (MW) portfolio, mostly made up of wind generating assets, forms part of the deal. This comprises 144 MW of wind power in Portugal, 538 MW of wind power in Spain, and 63 MW of photovoltaic assets in Spain. A development pipeline of 1.6 gigawatts (GW) is also included in the purchase. Nonetheless, 350MW of concentrated solar power assets from the regulated portfolio will remain with Brookfield.
Masdar’s Dedication to Sustainable Energy
Dr. Sultan bin Ahmed Al Jaber, President of COP28, Chairman of Masdar, and Minister of Industry and Advanced Technology, emphasized Masdar’s dedication to extending renewable energy throughout Europe and the Iberian Peninsula. He stressed that this purchase is among the biggest transactions in Spain for renewable energy. It is consistent with the UAE’s aim to triple its renewable energy capacity by 2030 and Masdar’s mission to help the European Union’s net-zero goals by 2050.
Brookfield’s Business Growth and Strategy
Brookfield and the management of Saeta have worked together to optimize operations since Brookfield acquired the firm in 2018. This has been accomplished through the sale of non-core assets, capital structure optimization, and business positioning for future growth through greenfield expansion and hybridization.
Encouraging the Rotation of Strategic Assets
The sale fits nicely with Brookfield Renewable’s asset rotation plan, which recycles funds for future expansion initiatives.
Advisors Concerned about the Deal
Masdar has designated KPMG to provide financial and tax consulting services, UL as technical advisor, Linklaters as legal advisor, and Citigroup Global Markets Limited as transaction advisor. In the meantime, Brookfield hired KPMG as their tax advisor, G-Advisory for technical consulting, Uría Menéndez for legal help, and Santander and Société Générale as transaction consultants.
