Clean energy company Masdar close to acquiring Brookfield's Saeta Yield

Masdar is near finalising a deal to buy Spanish renewable energy firm Saeta Yield SA from Brookfield Asset Management, according to people familiar with the matter, according to a report by Bloomberg.

The Abu Dhabi clean-energy firm is finalising the deal that may be announced this month, the people said, asking not to be named as discussions are private.

Saeta, which owns assets in Spain and Portugal, could be valued at as much as €1.5 billion ($1.7 billion), local reports said.

Clean-energy companies have been attracting investor interest across several European markets in recent months as high interest rates and equipment costs brought valuations down. Spain is one of the major markets for solar power in the region.

Talks between Masdar and Saeta regarding a deal are advanced, those people said, although the talks could be delayed or derailed. Brookfield's spokesman declined to comment. A press officer for Masdar said the fund doesn't comment on "market speculation." A representative for Saeta didn't immediately respond to requests for comment outside regular business hours.

It would be the second clean-energy deal for Masdar in Spain in as many months. In July, Masdar agreed to purchase a minority stake in a portfolio of solar fields from Enel SpA's subsidiary.

Brookfield took Saeta private in 2018 after first acquiring the company. The Madrid-based company was listed early in 2015 during a frenzy of investor interest in so-called yieldcos — a type of renewable energy firm whose plants produce a steady flow of dividends and require low levels of investment.

Mark Carney, chair of Brookfield Asset Management, also chairs Bloomberg Inc.