Iberdrola will reduce its capital by 154.77 million shares, for which it will redeem 206.36 million shares

Iberdrola has begun a process to redeem 206.36 million treasury shares, with the aim of reducing its share capital by 154.77 million euros, the company informed the Spanish National Securities Market Commission (CNMV) on Monday. 

After this operation, Iberdrola's share capital will be set at 4,680 million euros, corresponding to 6,240 million shares. 

This transaction was approved by Iberdrola's ordinary general shareholders' meeting on 28 April and, subsequently, the board of directors gave the execution order. 

Iberdrola explained that the purpose of the capital reduction is to redeem treasury shares in order to contribute to the company's "shareholder remuneration policy".

This capital reduction will be charged to unrestricted reserves, with the corresponding allocation of a reserve for amortised capital, for an amount equal to the nominal value of the own shares effectively amortised. Iberdrola's creditors will not have the right to object. 

The company has specified that, as the shares to be redeemed are owned by it, the operation will not involve the return of contributions. 

The mandatory announcements of the capital reduction will be published on 4 July in the Official Gazette of the Mercantile Registry and on the Ercros corporate website.