T + T – Normal size
Abu Dhabi Future Energy Company (Masdar) has announced the acquisition of Saita Yield from Brookfield Renewables for an estimated value of AED 5 billion ($1.4 billion / €1.2 billion). The deal is subject to customary regulatory approvals and is expected to close by the end of 2024.
SAITA is a leading independent developer, owner and operator of renewable energy assets, with projects spanning the entire value chain within the sector.
The deal includes a diversified portfolio of projects, mostly in the wind energy sector, with a total capacity of 745 megawatts, including 538 megawatts of wind energy assets in Spain, 144 megawatts of wind energy assets in Portugal, and 63 megawatts of solar photovoltaic assets in Spain, and includes plans to develop other projects with a capacity of 1.6 gigawatts, while the deal excludes a group of concentrated solar power projects with a capacity of 350 megawatts, which Brookfield will retain and continue to operate.
His Excellency Dr. Sultan bin Ahmed Sultan Al Jaber, Minister of Industry and Advanced Technology, President of COP28, and Chairman of Masdar, said that this investment confirms Masdar’s commitment to implementing the leadership’s vision to promote sustainable economic development and deploy renewable energy solutions and projects.
He added that this deal with Brookfield Renewable represents one of the largest renewable energy deals in Spain, and confirms the great efforts made by Masdar to expand its activities and projects and implement its ambitious plans for growth and expansion, and supports the goal of tripling global renewable energy capacity, in line with the historic “UAE Agreement” reached during the Conference of the Parties “COP28”.
His Excellency explained that this deal gains additional importance in supporting the European Union’s goals of achieving climate neutrality by 2050 and investing fully in the field of renewable energy.
This transaction represents one of the largest renewable energy transactions in Spain, and strengthens Masdar’s position in one of the largest renewable energy markets in Europe. The transaction reflects Masdar’s commitment to contributing to the energy transition in Spain, Portugal and Europe, and reinforces its growth plans in the region in support of its goal of increasing the total production capacity of its global project portfolio to 100 gigawatts by 2030.
Masdar recently announced an agreement with Endesa to become a partner in a 2.5 GW renewable energy portfolio in Spain, subject to regulatory approvals.
“We are delighted to have concluded this important transaction with Masdar,” said Mark Carney, Chairman and Chief Investment Officer of Brookfield. “As global leaders in clean energy, Brookfield and Masdar will continue to play a vital role in supporting the transition to a carbon-free economy.”
Since Brookfield acquired Saita in 2018, it has worked with the company’s management team to execute a successful business plan focused on optimizing the capital structure, driving growth through mergers, re-starts, sustainable development and other opportunities.
The deal is part of Brookfield’s strategy in renewable energy assets to recycle capital to fund growth activities.
“With a portfolio of operational projects, most of which are in the wind energy sector, with a total capacity of 745 megawatts, and plans to develop projects with a capacity of 1.6 gigawatts in Spain and Portugal, Saita is an important addition to Masdar’s project portfolio in Europe, especially after its recent partnership with Endesa in a portfolio of solar energy projects with a capacity of 2.5 gigawatts,” said Mohamed Jameel Al Ramahi, CEO of Masdar.
He added that this deal represents an important step that strengthens Masdar’s presence in the Iberian market, by acquiring a strong renewable energy company with a significant portfolio of operational projects, a highly qualified management team, and tangible growth opportunities in the short and long term, which supports Masdar’s plans to reach a project portfolio of 100 gigawatts by 2030.
“We have supported and developed Saita during our ownership, working closely with management to ensure that its portfolio across the Iberian Peninsula is strengthened and expanded,” said Connor Teske, CEO of Brookfield Wapple Partners. “The company has significant development plans, is managed by a highly skilled team, and has the capabilities to continue developing ambitious renewable energy projects in the coming years under Masdar’s leadership.”
“After more than six years of successful growth and profitability with Brookfield, we look forward to starting a new chapter in Saita’s journey under Masdar, working together to take Saita to a new level of growth and consolidate its position as the leading independent renewable energy producer in Iberia,” said Alvaro Perez de Lama, CEO of Saita.
Masdar has appointed Citigroup Global Markets Limited as transaction advisor, Linklaters as legal advisor, UL as technical advisor, and KPMG as financial and tax advisor, while Brookfield has appointed Banco Santander and Societe Generale as transaction advisors, Aurea Mendes as legal advisor, G Advisory as technical advisor, and KPMG as tax advisor.
