Brookfield Powers Up: Eyes Major Stake In Neoen With A Bold Acquisition Bid
Brookfield Asset Management Inc (NYSE:BAM), together with its institutional partners, including Brookfield Renewable Partners L.P. (NYSE:BEP) and Temasek, through a special purpose vehicle, inked an exclusive negotiation to acquire a 53.32% shareholding in Neoen (OTC:NOSPF) for EUR 39.85 per share.
Brookfield has entered into exclusive negotiations with Impala, the Fonds Stratégique de Participations managed by ISALT, Cartusiai and Xavier Barbaro, and other shareholders.
Neoen is a global renewables developer with an 8,000 megawatt portfolio of wind, solar and storage assets in operation or under construction alongside a significant 20,000 megawatts advanced pipeline of development projects, located in strategic markets, particularly in Australia, France and the Nordics.
The acquisition price represents a 26.9% premium over the last closing price and premia of 40.3% and 43.5% over the 3 and 6-month volume-weighted average price, respectively.
Neoen’s Board, in a meeting on May 29, unanimously welcomed the proposed transaction.
The offer implies an equity value of 100% of the shares of EUR 6.1 billion ($6.6 billion). The company expects to obtain regulatory approvals by the fourth quarter of 2024 and launch a tender offer in the first quarter of 2025.
Subject to the closing of the block acquisition, Brookfield would file an all-cash mandatory tender offer for all of the remaining shares and outstanding convertible bonds in Neoen with the intention of implementing a squeeze out.
The growth of AI and cloud computing continues to drive higher demand for renewable sources of power, as typified by Brookfield’s recent agreement to supply Microsoft Corporation (NASDAQ:MSFT) with over 10,500 megawatts of renewable power, as per the company’s statement.
As of March-end, BAM had cash and cash equivalent of $2.6 billion.
Price Action: BAM shares are up 2.79% at $39.40 at the last check Thursday.
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