UAE’s Abu Dhabi Future Energy Company (Masdar) has unveiled plans to acquire Spanish clean energy company Saeta Yield from Brookfield Renewable and its institutional partners for $1.4bn.
Saeta Yield is an independent developer, owner, and operator of renewable energy assets with capabilities across the entire value chain.
The transaction encompasses a portfolio of 745MW, comprising mainly wind assets. The portfolio includes 538MW of wind assets in Spain, 144MW wind assets in Portugal, and 63MW of solar photovoltaic (PV) assets in Spain.
Besides, the deal includes a 1.6GW pipeline of development projects.
Brookfield Renewable will continue to operate a 350MW portfolio of concentrated solar power assets, which is excluded from the deal. The publicly traded limited partnership acquired Saeta Yield in 2018.
Both Brookfield Renewable and Saeta Yield have since worked on divesting non-core assets. This includes optimising the Spanish clean energy company’s capital structure and advancing growth through initiatives such as repowering, hybridisation, and greenfield development.
The sale of Saeta Yield aligns with Brookfield Renewable’s strategy to recycle capital and invest in new growth opportunities.
Saeta Yield CEO Álvaro Pérez de Lema said: “After more than six years of successful and profitable growth with Brookfield, we are very excited to open a new chapter in Saeta’s history with the arrival of Masdar as the new controlling shareholder.
“We look forward to working with Masdar to take Saeta to the next phase of its growth story, further consolidating its leadership position as an independent producer of renewable energy in Iberia.”
Through the deal, Masdar aims to expedite the energy transition in Spain, Portugal, and Europe. This will also help the UAE-based firm to further advance growth plans in the region as the company targets a global capacity of 100GW by 2030.
Saeta Yield’s proposed acquisition follows Masdar’s recent agreement with Enel’s subsidiary Endesa to acquire a 49.99% stake in the Spanish solar power assets of the latter.
The Endesa transaction, which involves assets with a combined capacity of 2GW, is valued at €817m. It is contingent upon various customary conditions and regulatory clearances.
Masdar CEO Mohamed Jameel Al Ramahi said: “With an operating capacity of 745MW of predominantly wind assets, and a 1.6GW development pipeline in Spain and Portugal, Saeta is a perfect complement to Masdar’s portfolio in Europe, following our recent partnership with Endesa for 2.5GW of solar energy.
“This deal consolidates our footprint in the Iberian market by acquiring a well-established renewable platform, with a strong operational portfolio and management team, and tangible near-term and long-term growth opportunities, supporting Masdar’s expansion plans to reach 100GW by 2030.”
Subject to customary approvals, the Saeta Yield transaction is expected to be completed by the end of this year.
