Total will acquire a 23% indirect stake in the French company Eren Renewable Energy (Eren RE) by subscribing to a capital increase for an amount of €237.5m. Under the framework of the deal, Total will have the option to take over control of Eren RE after a period of 5 years.
Eren RE is specializing in renewable energy development in emerging countries (Asia-Pacific, Africa and Latin America) and has built up a portfolio of wind, hydropower and solar assets with a gross installed capacity of 650 MW in operation or under construction. This capital increase will enable Eren RE to cover its financing requirements for the acceleration of its development and to reach a capacity of 3 GW in the next five years.
This is the largest external renewable energy acquisition that Total has implemented since the takeover of the American company SunPower in 2011. The deal fits in the group's strategy and will rebalance its renewable energies portfolio between the upstream manufacturing activities (SunPower) and the downstream power production (Eren RE).
Source: Eren RE