Iberdrola has initiated an offer to acquire an additional 18.4% stake in its US subsidiary, Avangrid. According to the company’s disclosure to the National Securities Market Commission (CNMV), the offer stands at $34.25 per share, presenting a premium of around 10% compared to the weighted average share price over the last 30 days. Presently, Iberdrola holds approximately 81.6% of Avangrid’s capital.
This proposed investment amounts to $2.48 billion for Iberdrola, equivalent to about €2.28 billion at the current exchange rate.
The primary aim of this transaction is to enhance Iberdrola’s exposure to the networks sector in the United States, particularly at a pivotal juncture for the company as it seeks growth in markets with robust credit ratings and regulated businesses like networks.
Based in Connecticut, Avangrid currently boasts $44 billion in assets and operates across 24 U.S. states. Its operations are concentrated in two main areas: networks and renewables. Under its networks division, Avangrid owns and manages eight electric and natural gas companies, catering to over 3.3 million customers in New York and New England. Meanwhile, its renewable energy segment oversees a portfolio of renewable energy generation facilities spanning the United States. Presently, the company has a workforce of 8,000 employees.
In the fiscal year 2023, Avangrid reported an adjusted gross operating profit (EBITDA) of $2.43 billion, marking an increase from $2.246 billion recorded in the previous year.
