Post by
Zipolitemexico on Jun 01, 2024 12:28pm
Scotia update on Neoen acquisition
Latest Research (May 30, 2024):OUR TAKE: Slight Positive. Brookfield Renewable and its partners have announced the intention to acquire 100% of the shares of Neoen, a publicly traded global renewable power operator and developer. The offer price of €39.85/share implies an equity value of €6.1b for the company. Brookfield is in negotiations with a group of shareholders representing ~53% of the company to acquire a majority stake, following which the company will submit a tender offer for the remainder of Neoen. It is expected that the deal would represent up to $540m of investment net to BEP. We highlight that this transaction would add a sizable development pipeline in key areas and further diversify Brookfield’s operations in Europe and Australia. We view Brookfield Renewable as a high-quality and high-growth way to participate in the global renewable power and decarbonization theme and reiterate our Sector Outperform rating.