LA DEFENSE (dpa-AFX) - TotalEnergies SE (TTE), a French energy and petroleum company, said on Tuesday it is buying out Total Eren or EREN RE, a renewable energy company by increasing its current stake of 30 percent to 100 percent.
The acquisition of 70.8 percent will mean a net investment of around 1.5 billion euros for TotalEnergies.
Total Eren is valued at 3.8 billion euros based on an attractive EBITDA multiple agreed to in 2017, allowing TotalEnergies to acquire all of Total Eren after a five-year period.
Post transaction, Total Eren will be fully integrated within TotalEnergies' Renewables business unit.
Total Eren's integration is expected result in an increase in TotalEnergies' Integrated Power Net Operating Income of around 160 million euros and CFFO of around 400 million euros in 2024.
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