TotalEnergies' Windfall: $689M Seagreen Stake Sale Ignites Renewables Partnership In Thailand
Portfolio Pulse from Lekha Gupta
TotalEnergies SE (NYSE:TTE) has agreed to sell a 25.5% stake in the Seagreen offshore wind farm to PTTEP for £522 million ($689 million), valuing the project at $4.3 billion. The deal aligns with TTE's renewable business model and post-transaction, TTE will retain a 25.5% stake. Additionally, TTE and PTTEP signed an MoU to explore renewable energy development. The Seagreen wind farm has a capacity of 1,075 MW and can power over 1.6 million homes. The transaction is expected to close after regulatory approvals. TTE shares closed up 1.79% at $68.40.
December 22, 2023 | 11:38 am
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TotalEnergies SE sells a 25.5% stake in Seagreen wind farm for $689 million, aligning with its renewable strategy and retaining a 25.5% stake post-deal.
The sale of the Seagreen stake is in line with TotalEnergies' strategy to transition towards renewable energy, which is likely viewed positively by investors. The deal's valuation at a multiple of 13 times the expected EBITDA is substantial, and the partnership with PTTEP to explore further renewable opportunities suggests growth potential. The share price increase on the announcement day indicates a positive market reaction, suggesting a likely short-term positive impact.
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