Iberdrola closes the purchase of its stake in Neoenergia from Previ for 1,920 million
Iberdrola has completed the acquisition of the shareholding of Caixa de Previdência dos Funcionários do Banco do Brasil (Previ) in Neoenergia, which amounts to 30.29% of the capital, thus now controls 84% of the capital of its subsidiary in Brazil, the company reported.
Specifically, the price of 32.5 reais per share, agreed on September 10, represents a disbursement of more than 1,920 million euros (11,950 million Brazilian reais). The operation has satisfactorily received the relevant regulatory approvals, according to the regulations applicable to this type of transactions.
Neoenergia supplies electricity to nearly 40 million Brazilians through 5 distributors (in the states of Bahia, Rio Grande do Norte, Pernambuco, Sao Paulo, Mato Grosso do Sul and Brasilia) and 18 transportation lines, making it the first distribution group in the country by number of clients.
The Brazilian subsidiary of Iberdrola has more than 725,000 kilometers of distribution lines and 8,000 kilometers of transportation lines and has 3,800 megawatts (MW) of renewable generation, mainly hydroelectric.
With this operation, the group chaired by Ignacio Sánchez Galán indicated that it reaffirms its commitment to Brazil and “takes a new step in its growth strategy based on the electrical networks business”in which it has 1.4 million kilometers of lines in the United States, the United Kingdom, Brazil and Spain.
