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  4. Iberdrola launches offer to acquire 18.4% of Avangrid

Iberdrola launches offer to acquire 18.4% of Avangrid

Published by , Editorial Assistant
Energy Global,

Iberdrola has launched an offer to acquire 18.4% of the capital of its US subsidiary, Avangrid. As reported by the company to the National Securities Market Commission (CNMV), the company is offering US$34.25 per share, which represents a premium of approximately 10% compared to the weighted average share price of the last 30 days. Currently, Iberdrola already owns approximately 81.6% of the US company.

This price represents an investment of $2.48 billion for Iberdrola – about €2.28 billion at the current exchange rate[2].

The objective of this transaction is to increase exposure to the networks business in the United States at a key time 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 US$44 billion in assets and operations in 24 U.S. states. It has two main businesses areas: networks and renewables. Through its networks business, Avangrid 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 throughout the United States. Today, the company has 8000 employees.

In 2023, the company posted adjusted gross operating profit (EBITDA) of US$2.43 billion, up from US$2.246 billion a year earlier.

 

 

For more news and technical articles from the global renewable industry, read the latest issue of Energy Global magazine.

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The Winter 2023 issue of Energy Global hosts an array of technical articles weather analysis, geothermal solutions, energy storage technology, and more. This issue also features a regional report looking at the future of renewables in North America, and a report from Théodore Reed-Martin, Editorial Assistant, Energy Global, on how Iceland utilises its unique geology for renewable energy.

Read the article online at: https://www.energyglobal.com/special-reports/07032024/iberdrola-launches-offer-to-acquire-184-of-avangrid/

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