Abu Dhabi Future Energy Company (Masdar) has agreed to acquire a 67% stake in Greek renewable power company Terna Energy, after which it will launch an all-cash mandatory tender offer for the remaining outstanding shares.

The transaction, including the subsequent offer, values Terna Energy at €2.4 billion (US$2.57 billion), making it the largest-ever energy deal on the Athens Stock Exchange, and one of the largest in the European renewables market.

Masdar has retained Rothschild & Co as the sole financial adviser and Simmons & Simmons, Bernitsas Law, and Latham & Watkins as legal advisers, in connection with the transaction and financing.

Reed Smith and Potamitis Vekris acted as legal advisers to GEK Terna Group, parent and key shareholder of Terna Energy, in the transaction. Morgan Stanley is the sole financial adviser to Terna Energy.

The deal is expected to be accompanied by significant capital investment, supporting Terna's contribution to Greece’s National Energy and Climate Plan and the European Union’s target to achieve net zero by 2050. The transaction is aligned with GEK Terna's strategy of becoming the leading diversified infrastructure group in Greece and Southeast Europe.

Established in 1997, Terna Energy specializes in financing, developing, constructing and operating renewable energy facilities, with focus on wind, solar, hydroelectric and pumped storage projects. The company has recently announced its growth plan, targeting renewable energy operational capacity of 6 gigawatts by 2030.

The proposed acquisition is expected to play an important role in growing Masdar’s portfolio in Europe as it targets 100GW global capacity by 2030.

"Today marks a major milestone in Masdar's strategy to expand its portfolio to 100GW of clean energy by 2030 and it will make a substantial contribution to the renewable energy capacity of Greece," says Sultan Al Jaber, the minister of industry and advanced technology of the United Arab Emirates and chairman of Masdar.

"As one of Europe’s biggest renewable energy transactions in 2024, this investment reflects the UAE's clear commitment to Greece and Europe's clean energy development and it represents another major practical step in realizing one of the central goals of the UAE Consensus, to triple global renewable energy capacity by 2030."