Brookfield Seals The Deal: Snags Major Stake In French Powerhouse Neoen

Brookfield Asset Management Ltd. BAM disclosed signing a share purchase agreement for a majority stake in France’s Neoen.

This transaction, known as the “Block Acquisition,” was signed after Neoen completed its works council information and consultation process.

As announced earlier, Brookfield’s offer implies an equity value of 100% of the shares of EUR 6.1 billion.

In particular, Brookfield inked a share purchase agreement with Impala, the Fonds Stratégique de Participations managed by ISALT, Cartusia, Xavier Barbaro, and other shareholders to acquire approximately 53.12% of Neoen’s outstanding shares for EUR 39.85 per share.

In addition, Brookfield entered into a tender agreement with Bpifrance’s ETI 2020 fund. Bpifrance agreed to tender its 4.36% stake in Neoen in Brookfield’s upcoming tender offer following the completion of the Block Acquisition.

Notably, in May, Brookfield Asset Management, together with its institutional partners, including Brookfield Renewable Partners BEP and Temasek, through a special purpose vehicle, inked an exclusive negotiation to acquire a 53.32% shareholding in Neoen.

The completion of the Block Acquisition is contingent upon customary regulatory approvals, including antitrust and foreign investment clearances.

Subject to the closing of the Block Acquisition, it is expected that Brookfield would file an all-cash mandatory tender offer for all of the remaining shares and outstanding convertible bonds in Neoen, with the intention of implementing a squeeze out. 

The company expects to obtain regulatory approvals by the fourth quarter of 2024, with the tender offer expected to commence in the first quarter of 2025.

As of March-end, BAM had cash and cash equivalent of $2.6 billion.

Price Action: BAM shares are up 0.68% at $38.54 premarket at the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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