July 25 (Reuters) – TotalEnergies (TTEF.PA) said on Tuesday that it would take full control of renewable energy company Total Eren, increasing its stake from 30% in the company to full ownership.
TotalEnergies said that as part of the transaction, Total Eren would be valued on an enterprise value basis at 3.8 billion euros ($4.2 billion), and that the acquisition of a further 70.8% in Total Eren represented a net investment of around 1.5 billion euros for TotalEnergies.
“With the acquisition and integration of Total Eren, we are now opening a new chapter of our development as the expertise of its team and its complementary geographical footprint will strengthen our renewable activities and our ability to build a profitable integrated power player,” said TotalEnergies Chairman and CEO Patrick Pouyanne.
Total Eren’s integration should result in an increase in TotalEnergies’ integrated power net operating income of around 160 million euros and an increase in TotalEnergies’ cash flow from operations (CFFO) of around 400 million euros in 2024, added the company.
($1 = 0.9030 euros)
Reporting by Sudip Kar-Gupta, Editing by Louise Heavens
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