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Brookfield is in talks to buy renewable energy company for $6.5 billion



Canadian alternative-investment giant Brookfield said it’s leading talks to buy a majority stake, and then buy out, French renewable energy provider Neoen.


Brookfield BAM , its mostly held Brookfield Renewable BEP unit and the Singapore sovereign wealth fund Temasek are in exclusive talks to buy a 53% stake in Neoen NEOEN held by the investment holding company of French entrepreneur Jacques Veyrat, the Fonds Stratégique de Participations, run by an alliance of seven French insurers that finances French companies, and by Neoen’s chairman and chief executive, Xavier Barbaro.


They’re offering 39.85 euros per share, a 27% premium to Wednesday’s close, and will offer to buy out the entire company at the same price once the block is purchased, which values the company at €6.1 billion ($6.5 billion).


Brookfield is pursuing the transaction through the Brookfield Global Transition Fund II, co-headed by former Bank of England governor Mark Carney.


Neoen is a leading global renewables developer with an 8,000 megawatts portfolio of wind, solar and storage assets in operation or under construction in Australia, France and the Nordics. It operates France’s most powerful solar farm and Finland’s largest wind farm.


In the first quarter, revenue fell 8%, after significant early generation revenue last year from several power plants. It’s expecting to return to growth over the next few quarters.

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