Iberdrola agrees to acquire 18.4% of its US subsidiary Avangrid for 2.348 million. Author: EFE

Madrid, May 17 (.). – Iberdrola has reached a definitive agreement to acquire the 18.4% of its US subsidiary Avangrid, which it does not already own, for $35.75 per share, representing a total outlay of $2.551 million (approx. €2.348 million).

Announcing the agreement in principle this afternoon, the Spanish multinational confirmed to the National Securities Market Commission (CNMV) that it has become final after Avangrid’s board of directors approved the transaction.

The body of its US subsidiary decided to approve the transaction on the recommendation of a committee consisting entirely of independent directors created specifically for this transaction (the special committee).

The Spanish group stressed that the agreement received “unanimous” support from members of the boards of directors of both Avangrid and Avangrid. Iberdrola (BME:).

Thus, Iberdrola, which already owns approximately 81.6% of the US company, will acquire the 18.4% of the remaining capital it does not already control for $35.75 per share, an improvement over the initial offer of $34. 25 per share.

This price represents an investment of $2.551 million for Iberdrola (approx. €2.348 million at current exchange rates). Exchange.

The deal aims to “increase its 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,” the Spanish group explained in a release. statement.

The deal is subject to the approval of shareholders and various regulatory authorities, such as the Federal Energy Regulatory Commission or the New York and Maine regulatory commissions.

Headquartered in Connecticut, Avangrid currently has $44 billion in assets, operations in 24 states across the country, and 8,000 employees, with its core businesses being grids and renewable energy.

Through the first company, Avangrid owns and operates eight electric and natural gas companies serving more than 3.3 million customers in New York and New England.

As for the latter, it owns and operates a portfolio of renewable energy generation facilities throughout the United States.

The company generated adjusted gross operating income (EBITDA) of $2.430 million in 2023, up from $2.246 million in the prior year.

On March 7, Iberdrola announced an offer to purchase 18.4% of Avangrida at a price of $34.25 per share, which at that time represented a 10% premium over the weighted average share price of the thirty previous days.

At this price, this operation would cost Iberdrola 2.486 million dollars, that is, about 2.280 million euros.