Iberdrola has launched a public takeover offer for the 16.2% of its Brazilian subsidiary Neoenergia it does not yet own, aiming to delist it and fully consolidate its presence in the country. The Spanish group, which already controls 83.8% of Neoenergia, is offering 32.5 BRL ($6.50) per share, the same price paid for the recent acquisition of Caixa de Previdência dos Funcionários do Banco do Brasil’s (PREVI) stake at the end of October. The offer is adjusted by the official Brazilian interest rate (SELIC) calculated from that date.
A transaction valued at more than one billion euros
The total value of the transaction is estimated at approximately €1.03bn ($1.12bn), before being updated according to the evolution of the SELIC rate and assuming Neoenergia does not distribute any interim dividends. By taking full control of its subsidiary, Iberdrola intends to simplify Neoenergia’s structure while reducing costs associated with listing on local financial markets. Delisting would also provide greater operational and financial flexibility.
The group’s strategy is based on the development of electricity networks, which represent 90% of Neoenergia’s business. Neoenergia supplies electricity to nearly 40 million people in 18 Brazilian states and the Federal District, through five regional distributors and 18 transmission lines.
Consolidation of Iberdrola’s integration model in Brazil
Neoenergia operates more than 725,000 kilometres of distribution lines and 8,000 kilometres of transmission lines. In terms of generation, it has 3,800 megawatts of renewable capacity, mainly from hydroelectric sources. It remains the leading electricity distribution operator in Brazil by number of customers.
Iberdrola, for its part, already controls a vast global network of 1.4 million kilometres of electricity transmission and distribution lines, across the United States, the United Kingdom, Spain and Brazil. This latest transaction aims to strengthen its strategic positioning in regulated, capital-intensive markets, in line with the growth plan presented at its 2025 Capital Markets Day.
