Masdar said in a press release that it signed “a definite agreement with Gek Terna and other shareholders to acquire initially 67% of the outstanding shares of Terna Energy at completion of the transaction at a price of €20 per share.”
Masdar added that the acquisition price represents an equity valuation of €2.4 billion and an enterprise value of €3.2 billion, marking the largest energy transaction in the Athens Stock Exchange’s history and one of the largest in Europe’s clean energy sector.
Upon securing the necessary regulatory approvals and closing the initial transaction, Masdar plans to launch an all-cash mandatory tender offer to acquire 100% of Terna Energy’s shares.
The €3.2 billion deal is Masdar’s largest business move in Greece thus far. In December 2023, Masdar and the Greek government had also reached a minor agreement to develop a 7 MW solar plant on the Greek isle of Poros, which is expected to cover a large part of the island’s electricity requirements. Masdar will fully sponsor the 7 MW project.
Established in 1997, the Greek company is a leader in Greece’s wind energy sector, owning about 1.2 GW of operating onshore wind power capacity. The 330 MW Kafireas project on Evia Island is Terna Energy’s largest operating wind project, comprising a cluster of different wind farms located at a relatively short distance.
The company is also pursuing plans in Greece’s offshore wind power market, which is starting to take shape. In November, the company was granted one of two “research licenses” issued by the Greek government for developing offshore wind power farms in North Eastern Greece, between Alexandroupoli and the island of Samothraki.
Terna Energy also operates a mere 8.5 MW of solar capacity. However, it is currently building or about to start building another 101 MW of PV capacity in Greece and has a 2 GW solar pipeline for which it seeks licenses.
Terna Energy’s presence in energy storage is crucial. The company is constructing its Amphilochia pumped hydroelectric energy storage project, which upon completion is expected to have a total installed capacity of 680 MW (production) and 730 MW (pumping). The project, located in Aetolia-Acarnania, North Western Greece, will be Greece’s largest grid-connected energy storage investment, exceeding €500 million. Terna Energy also recently submitted a €120 million loan request to the European Investment Bank for the project.
In February 2024, Terna was awarded two contracts in Greece’s second energy storage tender. It won a 40 MW project plus a separate 12 MW installation under its Heron subsidiary, for which the company will receive public subsidy support in the form of capital and operational expenditure.
Sultan Al Jaber, the minister of industry for the United Arab Emirates and the chairman of Masdar, said the Terna Energy deal “marks a major milestone in Masdar's strategy to expand its portfolio to 100 GW of clean energy by 2030 and will make a substantial contribution to the renewable energy capacity of Greece.”
Separately, Masdar has also signed preliminary agreements with two other energy companies to develop wind power plants in Greece and Egypt.
