Iberdrola announced this Thursday a takeover bid of $2,486 million, about €2,280 million at the current exchange rate, to buy 18.4% of the capital of its US subsidiary Avangrid, which it does not control.
As communicated to the National Securities Market Commission (CNMV), it offers 34.25 dollars per share, which represents an approximate premium of 10% compared to the weighted average price of the share price of the last 30 days.
The operation seeks to “increase exposure to the network business in the US at a key moment for Iberdrola, which wants to grow in markets with high credit ratings and in regulated businesses such as networks.”
Avangrid has $44 billion in assets and operations in 24 US states, with approximately 8,000 workers. 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. Through its renewable energy business, Avangrid owns and operates a portfolio of renewable energy generation facilities across the country.
The execution of a definitive agreement is subject to the completion of confirmatory due diligence; to 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 usual conditions in these operations.
In this way, the group chaired by Ignacio Sánchez Galán reaffirms its commitment to a strategic market such as the US, 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.
The operation also comes after the sale of assets in Mexico was closed at the end of February for about 6.2 billion dollars, about 5.717 million euros.
