Shares of French renewable energy provider Neoen surged over 20% in early trading on the Paris stock exchange Friday, nearing the price of a takeover bid by Canadian asset manager Brookfield.
Neoen shares traded at 37.88 euros (+20.64%) around 10:10 AM, still slightly below Brookfield’s offer of 39.85 euros per share, with the intention to delist Neoen from the Paris exchange.
The asset manager, operating the Brookfield Renewable Partners renewable energy platform, entered exclusive negotiations with Neoen shareholders to acquire approximately 53.32% of the shares and then purchase the company entirely, Neoen revealed Thursday.
“15 years after creating Neoen (…), we are delighted to open a new chapter in our history with Brookfield,” said Xavier Barbaro. He added that the board of directors fully approves this transaction.
In a note published Friday, Stifel analysts consider the “offer a good opportunity” to achieve a better valuation of Neoen, which reaches 6.1 billion euros within the framework of the offer.
Due to rising interest rates, which make financing long-term projects more difficult, and falling electricity prices, particularly in the United States, renewable energy providers like Neoen are currently attracting investor interest for buyouts.
Especially since the French company, despite a difficult year on the stock market (-12.79% in 2023), tripled its net profit last year (150.2 million euros).