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Iberdrola launches an offer to buy 18.4% of its US subsidiary Avangrid for 2,280 million

The company would take 100% of the company and boost its growth in the United States, a key market.

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Iberdrola launches an offer to buy 18.4% of its US subsidiary Avangrid for 2,280 million

The company would take 100% of the company and boost its growth in the United States, a key market

Iberdrola has launched an offer to acquire 18.4% of Avangrid, of which it already controls approximately 81.6% of its capital, which would take full control of its US subsidiary, as the company announced this Thursday.

Specifically, Iberdrola offers 34.25 dollars (31.44 euros) per share, which represents an approximate premium of 10% compared to the weighted average price of the last 30 days. This represents an investment of 2,486 million dollars (about 2,280 million euros) to acquire 100% of Avangrid.

The energy company highlighted that the objective of this transaction is to increase its exposure to the networks business in the United States "at a key moment for Iberdrola, which wants to grow in markets with high credit ratings and in regulated businesses, such as networks."

Headquartered in Connecticut, Avangrid currently has 44 billion dollars (40,391 million euros) in assets and operations in 24 states in the United States.

Through its networking business, it owns and operates eight electric and natural gas companies, serving more than 3.3 million customers in New York and New England.

Regarding the renewable energy business, Avangrid owns and operates a portfolio of renewable energy generation facilities throughout the United States.

In 2023, the company obtained an adjusted gross operating profit (Ebitda) of 2,430 million dollars (2,230 million euros), 8.1% more than the 2,246 million dollars (2,061 million euros) of the previous year.

As reported by Iberdrola to the National Securities Market Commission (CNMV), the execution of a definitive agreement is subject to the performance of a confirmatory 'due diligence', the negotiation and signing of the definitive documentation of the transaction, and the approval of the board of directors of the energy company and the Independent Committee and the board of directors of Avangrid, as well as compliance with certain usual conditions in these operations.

AFTER CLOSING THE SALE IN MEXICO AND RESIGNING FROM PNM.

In this way, the group chaired by Ignacio Sánchez Galán is moving after closing the sale of assets in Mexico at the end of February for some 6,200 million dollars (5,717 million euros), with juicy capital gains, in an operation for which was derived from 13 generation plants with an installed capacity of 8,539 megawatts (MW), of which 99% corresponds to gas combined cycles and 87% to plants that operate under the Independent Energy Producer regime, contracted with the Federal Electricity Commission (CFE).

Furthermore, it reaffirms the energy company's commitment to a strategic market such as the United States, after at the beginning of the year it decided to renounce the merger with PNM Resources, which was its great move to create an energy 'giant' in the country.

Keywords:
Iberdrola