Spanish electric utility company Iberdrola has launched an offer to acquire the remaining stake in its US subsidiary Avangrid.
Avangrid received a non-binding proposal from Iberdrola to buy an 18.4% stake in the company. The Spanish firm owns approximately 81.6% of Avangrid’s issued and outstanding shares of common stock.
Iberdrola offered to buy the remaining stake in its US subsidiary for $34.25 in cash per share or $2.48bn in total.
Avangrid said that an unaffiliated committee will review, evaluate, negotiate, and approve or disapprove the proposal, advised by independent legal and financial advisers.
For Iberdrola to take full control of Avangrid, the transaction must be approved by the unaffiliated committee and by Avangrid shareholders that hold a majority of the outstanding shares of common stock not held by the Spanish utility and its affiliates.
Avangrid stated that no decision has been made at this point and that it has only received a proposal, which does not constitute an offer or proposal capable of acceptance and may be withdrawn at any time. The company added that there can be no assurances that any definitive offer would be made or that the proposed transaction will be approved or completed.
Energy News Beat