TotalEnergies Signs EUR 10.6 Bln Deal With EPH To Expand Flexible Power In Europe

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(RTTNews) - TotalEnergies has signed an agreement with Energetický a prumyslový holding, a.s. (EPH) to acquire a 50% stake in its flexible power generation platform. The portfolio includes gas-fired and biomass power plants as well as battery assets across Western Europe, covering Italy, the United Kingdom and Ireland, the Netherlands, and France. The transaction values the platform at an enterprise value of 10.6 billion euros.

As per the agreement, EPH will receive the equivalent of 5.1 billion euros in TotalEnergies shares. 95.4 million TotalEnergies shares will be issued, based on a price equal to the volume-weighted average share price of the twenty trading sessions preceding November 16th (signing date), i.e. 53.94 euros per share, representing about 4.1% of TotalEnergies' share capital.

The transaction will result in the creation of a joint venture owned 50/50 by TotalEnergies and EPH, which will be responsible for the industrial management of the assets and the business development, while each company will market its share of production under a tolling arrangement with the joint venture.

The transaction covers a portfolio of more than 14 GW gross capacity of flexible generation assets in operation or under construction.

The transaction is immediately accretive to TotalEnergies' shareholders. Over the next five years, TotalEnergies expects an increase in available cash flow of about $750 million per year, which far exceeds the additional dividend requirement for the newly issued shares.

Due to the accelerated inorganic growth within the Integrated Power segment, the Company is lowering its annual net Capex guidance by $1 billion per year to $14-16 billion per year for 2026-2030, of which $2-3 billion is for Integrated Power, while maintaining its 2030 electricity generation target of 100-120 TWh.

The transaction is subject to the legal information and consultation process of the relevant employee representatives and to the approval of the competent authorities. Completion is expected mid-2026.