French company TotalEnergies, which holds a diversified portfolio of oil assets and is a partner of Sonangol in the Caraculo Photovoltaic Plant, inaugurated last March in Namibe, announced on 25th July Tuesday a global operation to buy out the capital of its renewable energy subsidiary, Total Eren, increasing its stake from approximately 30 to 100 percent.
On the backdrop of this acquisition, all personnel from Total Eren will be fully integrated into TotalEnergies’ Renewable Business Unit, as stipulated in a strategic agreement signed between TotalEnergies and Total Eren in 2017, granting the former the right to acquire the entirety of the latter (previously EREN RE) after a five-year period.
With this transaction, Total Eren is valued at a market value of 3.8 billion euros, based on an attractive EBITDA multiple negotiated in the initial strategic agreement signed in 2017. The acquisition of 70.81 percent represents a net investment of about 1.5 billion Euros for TotalEnergies.
The integration of Total Eren is expected to result in an increase in TotalEnergies’ integrated net operating revenue of about 160 million euros and core funds of about 400 million euros in 2024.
Total Eren currently operates 3.5 gigawatts of renewable capacity worldwide and has a portfolio of solar, wind, hydropower, and storage energy projects totaling over 10 gigawatts in 30 countries, with 1.2 gigawatts under construction or in advanced development stages.
TotalEnergies revealed that it plans to leverage the 2.00 gigawatts of Total Eren’s operational assets in commercial countries (mainly Portugal, Greece, Australia, and Brazil) to build an integrated energy strategy.
