Global multi-energy company TotalEnergies has revealed its plans to buy out the shareholders of Independent Power Producer (IPP) Total Eren, increasing its stake from close to 30% to 100%.
The deal comes after a strategic agreement signed between the two companies in 2017, which granted TotalEnergies the right to acquire all of Total Eren (formerly EREN RE) after five years.
According to the details of the transaction, Total Eren is valued at an Enterprise Value of €3.8bn based on an EBITDA multiple negotiated in 2017.
The acquisition of 70.8% represents a net investment of around €1.5bn for TotalEnergies. TotalEnergies’ Integrated Power Net Operating Income is set to increase following integration by around 160m and CFFO of around €400m in 2024.
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