Iberdrola moves to fully acquire Neoenergia
The bid targets remaining 16.2 % of shares at the same valuation paid to PREVI, paving the way for full ownership and delisting in Brazil.
Image for illustrative purposes
Brazil: Iberdrola has presented an offer to acquire the remaining 16.2% of Neoenergia’s share capital. If completed, the move would allow the Group, which already owns 83.8%, to gain full control of its Brazilian subsidiary.
Iberdrola is offering the same price it paid to acquire the Caixa de Previdência dos Funcionários do Banco do Brasil (PREVI) stake of 30.29 % (32.5 Brazilian reais per share), adjusted by Brazil’s official SELIC interest rate. The operation is expected to involve a total outlay of approximately $1.18 B (€1.03 B), before any update linked to SELIC or potential dividend payments by Neoenergia.
The move is expected to streamline Neoenergia’s structure, allowing greater flexibility in operations and financing while removing expenses linked to maintaining its listing on the stock market.
By pursuing full ownership, Iberdrola further strengthens its long-term presence in Brazil and reinforces its strategy focused on electricity networks, which represent about 90 % of Neoenergia’s activities.
Neoenergia currently provides electricity to almost 40 million people through five distribution companies in Bahia, Rio Grande do Norte, Pernambuco, São Paulo, Mato Grosso do Sul and Brasília, as well as 18 transmission lines. With operations in 18 states and the Federal District, the company manages more than 725,000 km of distribution networks, 8,000 km of transmission assets, and 3,800 MW of renewable capacity, mainly hydroelectric.
Across its global operations, Iberdrola oversees around 1.4 million kilometres of transmission and distribution infrastructure in countries including the United States, the United Kingdom, Brazil and Spain.
Source: Iberdrola
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