Renewable Energy M&A: Antin Infrastructure Partners makes voluntary cash tender offer to takeover Opdenergy at an enterprise value of ~$1.4bn

Offer details: Antin has proposed to acquire 100% ownership in Opdenergy for a unit share price of $6.28, representing an equity value of ~$931mn. The share price offered represents a 46% premium over the price per share on June 9, 2023, a 42% premium over the weighted average price for the preceding six months, and a 23% premium over the IPO price in July 2022. In addition, Antin will assume $506mn in net debt from Opdenergy. Antin plans to delist Opdenergy from the Spanish stock exchange following the effective closing of the transaction.

Target company details: Opdenergy is vertically-integrated independent renewable energy developer, with ~900 MW of projects in operation and ~950 MW under construction. The company also has a pipeline of 12.6 GW, of which ~1.6 GW is in advanced stages of development. These assets are spread across Spain, US, Chile, Italy and Mexico. Over 70% of the company’s production is contracted to private entities under long term power purchase agreements (PPAs), while the remainder is sold on the merchant market.

Deal rationale: The transaction aligns with Antin's strategic objective of broadening its renewable energy portfolio in Europe and North America. This move allows Antin to capitalize on the improved permitting process and financing capital availability under the InvestEU-EIB budgetary guarantee programme in Europe, as well tax credits and other incentives offered under the IRA in the US. The offer, which was presented at a substantial premium above the market value of Opdenergy, reflects the robust financial performance that the company has demonstrated in recent periods. Opdenergy has clocked a revenue and EBITDA growth of ~200% and ~370% y/y, respectively, in Q1 2023. The growth also indicates a positive trajectory for the company in the future. As a result, Antin will experience immediate financial gains through substantial income opportunities, as well as long-term benefits derived from the significant increase in Opdenergy's valuation, which is attributable to the anticipated expansion of the company's extensive development portfolio.

The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.

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