02:11 PM EDT, 05/30/2024 (MT Newswires) -- Brookfield (through its BGTF II fund) and Singapore's state investment firm Temasek, have entered exclusive negotiations to buy 100% of Neoen SA, a French renewable platform, for 39.85 euros per share. The deal price represents a ~27% premium to last close and values Neoen at US$6.6 billion. Both the current Neoen shareholders (Impala, ISALT, etc.) and Neoen management are supportive of the deal, which is expected to close in H1 2025E. Through BGTFII, BEP plans to invest up to US$540 million in the deal, National Bank writes.

Neoen has an ~8 GW operating and under construction portfolio (50% solar, 30% wind, 20% storage) in Australia, France, and the Nordic countries, as well as a 20 GW development pipeline, largely in the same regions. Neoen's operating assets are on average three years old and have an average contract life of ~11 years (~80% of the portfolio is contracted), notes analyst Rupert Merer.

He adds that BEP's ability to get large deals done through the backing of the Brookfield Transition Funds is on full display once more, and comes on the back of BEP's flagship 10.5 GW deal with Microsoft announced a few weeks ago.

Maintain Outperform with a US$32/unit target.

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