Iberdrola launches takeover bid to acquire the remaining 16.2% of Neoenergia in Brazil

Iberdrola has launched a takeover bid for 16.2% of Neoenergia's share capital. With this transaction, the Group, which already controls 83.8% of the capital, would take over 100% of its Brazilian subsidiary.

Iberdrola is offering the same price paid in the recent acquisition of Caixa de Previdência dos Funcionários do Banco do Brasil's (‘PREVI’) 30.29% stake in the capital - 32.5 Brazilian reais per share - adjusted by Brazil's official interest rate, known as SELIC. The total outlay (before adjustment in line with the SELIC rate and assuming that Neoenergia does not pay any interim dividends) is expected to be around €1.03 billion.

The transaction will simplify Neoenergia's structure, giving its operations and financing greater flexibility and reducing expenses related to maintaining the trading of shares on the market.

With this transaction, Iberdrola reaffirms its commitment to Brazil and to a growth model based on electricity networks, which account for 90% of Neoenergia's business.

Neoenergia supplies electricity to around 40 million Brazilians through five distributors in the states of Bahia, Rio Grande do Norte, Pernambuco, Sao Paulo, Mato Grosso do Sul and Brasilia and 18 transmission lines, making it the country's leading distribution group in terms of number of customers. Neoenergia, which is present in 18 states and the Federal District, has more than 725,000 kilometres of electricity distribution lines and 8,000 kilometres of transmission lines, and has 3,800 MW of renewable generation, mainly hydroelectric.

Globally, Iberdrola already has 1,400,000 kilometres of electricity transmission and distribution lines in the United States, the United Kingdom, Brazil and Spain.