Corporate News Blog - Total SA Acquires 23% Stake in Eren Renewable Energy
LONDON, UK / ACCESSWIRE / September 21, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Total SA (NYSE: TOT), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=TOT. The Company announced on September 19, 2017, that it has entered into an agreement to acquire an indirect 23% stake in Eren Renewable Energy (EREN) by subscribing to a capital increase for an amount of €237.5 million. For immediate access to our complimentary reports, including today's coverage, register for free now at:
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Benefits of the Agreement
The agreement will enable Total to speed up its growth in the production of power from renewable sources.
Total will also get an option to take over control of EREN after a period of 5 years.
The capital increase subscribed by Total will allow EREN to cover its financing needs to accelerate its development in the coming years.
Insights of the Agreement
Following the transaction, EREN which will be renamed Total Eren.
The agreement will help Total to enter the wind power generation segment.
Development of EREN's solar farm business will be mainly focused on emerging countries where the demand for electricity is growing.
The transaction is subject to the approval from the relevant competition authorities.
Total Investing in Additional Asset to Accelerate its Profitable Growth in Renewable Energy Segment
Commenting on the agreement, Patrick Pouyanné, Chairman and CEO of Total, said that a partnership with EREN will allow Total to leverage a team that has a proven track record in renewable power production, and he added that investing in an additional asset to accelerate the Company's profitable growth in this segment was in-line with Total's ambition to become a responsible energy major.
Agreement Allows Total to accelerate its Growth in Solar Energy
Philippe Sauquet, President of Gas, Renewables, and Power, stated that EREN's momentum will allow Total to accelerate its growth in solar energy and move into the wind power market. The agreement with EREN is a major step towards the Company's objective of achieving 5GW of installed capacity in 5 years.
EREN to Share its Aim of Renewable Energy Sector Development with Total
Pâris Mouratoglou, Chairman of EREN, stated that this strategic agreement allows the Company to join forces with a major energy player, with whom it shared a strong desire for development in the renewable energy sector and an ambitious long-term vision. EREN's positioning is global and the Total Group's strength in international markets represents a tremendous accelerator.
EREN to Benefit from Total's Increased Financial Capacities
David Corchia, CEO of EREN, expressed that as part of this agreement, EREN will retain its managerial autonomy that has made its success since the foundation, in particular, its agility, flexibility, and speed of strategic decisions and their implementation. He added that the Company will benefit from increased financial capacities to match its ambitions.
Total SA Expands its Energy Efficiency Business with the Acquisition of GreenFlex
On September 19, 2017, Total also signed an agreement to acquire GreenFlex, a French Company specialized in energy efficiency. The acquisition will accelerate the expansion of Total's energy efficiency offering, over and above the growth of its affiliates BHC Energy in France and Tenag in Germany.
Last Close Stock Review
At the closing bell, on Wednesday, September 20, 2017, Total SA's stock rose 1.13%, ending the trading session at $54.64. A total volume of 1.60 million shares have exchanged hands. The Company's stock price surged 10.47% in the last three months, 9.63% in the past six months, and 18.24% in the previous twelve months. Moreover, the stock gained 7.20% since the start of the year. The stock is trading at a PE ratio of 18.69 and has a dividend yield of 5.44%. The stock currently has a market cap of $135.56 billion.
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