By Adria Calatayud


Brookfield Asset Management agreed to buy a majority stake in France's Neoen, the first step toward a full acquisition in a deal that values the renewables company as a whole at 6.09 billion euros ($6.54 billion).

With the deal, Brookfield aims to bolster exposure to renewables and battery-storage technology and to accelerate Neoen's portfolio expansion.

The deal between Brookfield and some Neoen shareholders covers a 53.12% stake in the company, but the investor plans to launch a tender offer for the remaining shares after completion of the majority-stake acquisition, the companies said Tuesday.

Paris-based Neoen has a portfolio of solar and wind power plants and energy-storage facilities, with operations in France, Finland, Mexico and Australia. The capacity of company's portfolio of assets in operation and under construction stands at more than 8.3 gigawatts.

The parties disclosed last month that they had entered into exclusive talks for an acquisition on the same terms and completion of Neoen's works council information and consultation process paved the way for a formal deal.

Brookfield signed an agreement with French investment company Impala, an alliance of seven French insurers called Fonds Strategique de Participations, and other investors including Neoen Chief Executive and Chairman Xavier Barbaro and his investment vehicle Cartusia, the companies said. The deal values Neoen at EUR39.85 a share, a 7.5% premium to its closing price of EUR37.08 on Monday and a 27% premium to its latest price before news of the talks emerged.

When the exclusive negotiations were disclosed in late May, the companies said Brookfield would join forces with partners including Brookfield Renewable and Singapore's state-investment company Temasek for the acquisition through a special-purpose vehicle exclusively controlled by Brookfield.

The buyer also entered into an agreement with French national investment bank Bpifrance for a further 4.36% stake in the company and is expected to file an all-cash tender offer for all of the remaining shares and outstanding convertible bonds, the companies said.

The parties expect to obtain regulatory approvals for the initial acquisition of the majority stake by the fourth quarter and the launch of the tender offer for the remaining shares in the first quarter of next year, they said.


Write to Adria Calatayud at adria.calatayud@wsj.com


(END) Dow Jones Newswires

06-25-24 0446ET