Masdar, the Abu Dhabi Future Energy Company, has solidified its presence in the Iberian energy market by agreeing to acquire renewable power assets developer and operator Saeta Yield from Brookfield Renewable for an impressive implied enterprise value of $1.4 billion. This strategic move marks a significant step for the United Arab Emirates-based renewable energy company, which is 43% owned by Abu Dhabi National Energy Co.
(ADX:TAQA), aiming to enhance its growth trajectory within the European market and advance towards its ambitious goal of achieving a global capacity of 100 gigawatts by 2030. In alignment with its commitment to accelerate the energy transition in Europe, Masdar will be acquiring Saeta's impressive portfolio, which includes 63 megawatts of solar photovoltaic assets situated in Spain and 745 megawatts primarily comprising wind assets spread across both Spain and Portugal.
Furthermore, the acquisition encompasses a substantial development pipeline of 1.6 gigawatts across these two countries, while notably excluding a regulated portfolio of 350 megawatts of concentrated solar power assets. Masdar's Chief Executive Officer, Mohamed Jameel Al Ramahi, expressed optimism regarding the acquisition, stating, "Saeta is a perfect complement to Masdar's portfolio in Europe, following our recent partnership with Endesa for 2.5 GW of solar energy." This acquisition not only reflects Masdar's strategic growth within the sector but also enhances its capabilities to deliver on its renewable energy mandates across the region. Meanwhile, for Brookfield, this sale represents a critical component of its overarching strategy to rotate capital effectively.
It allows Brookfield to fund growth initiatives and strategically divest non-core assets, enabling the renewable power operator to optimize its capital structure. This calculated movement will set the stage for future growth through various strategies, such as hybridization, repowering existing sites, greenfield development, and strategic tuck-in opportunities. This acquisition stands out as one of Spain's largest renewable energy transactions, with the closure expected by the end of 2024, contingent upon customary approvals and regulatory processes..