Iberdrola submits takeover bid for full ownership of Brazil’s Neoenergia

Core Viewpoint - Iberdrola has initiated a takeover bid for the remaining 16.2% of Brazilian electricity company Neoenergia, aiming for full ownership to enhance its presence in the Brazilian market [1][3] Group 1: Takeover Details - Iberdrola currently holds 83.8% of Neoenergia's share capital and is offering 32.5 reais ($6.01) per share, consistent with the price paid in a recent transaction with Caixa de Previdência dos Funcionários do Banco do Brasil (PREVI) [1][2] - The total expected expenditure for this acquisition is approximately €1.03 million, subject to updates based on Brazil's SELIC interest rate and assuming no interim dividends are paid by Neoenergia [2] Group 2: Strategic Implications - The transaction is anticipated to simplify Neoenergia's corporate structure, enhancing operational and financial flexibility while reducing costs related to share trading [3] - This move reinforces Iberdrola's commitment to Brazil and its growth strategy focused on electricity grids, which constitute about 90% of Neoenergia's operations [3] Group 3: Neoenergia's Operations - Neoenergia serves nearly 40 million customers across various Brazilian states, making it the leading distribution group in Brazil by customer count [4] - The company operates in 18 states and the Federal District, managing over 725,000 km of electricity distribution lines and 8,000 km of transmission lines [4] - Neoenergia has a renewable generation capacity of 3,800 MW, primarily from hydroelectric sources [5]