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Iberdrola Launches Tender to Buy Remaining Stake in Brazil’s Neoenergia

The offer matches the PREVI price, indexed to Brazil’s SELIC rate.

Overview

  • Iberdrola has opened a public offer for the outstanding 16.2% of Neoenergia, which would lift its holding from 83.8% to full ownership.
  • The bid is set at 32.5 Brazilian reais per share with a final amount updated by the SELIC rate until closing.
  • The company estimates a cash outlay of about €1.03 billion before any SELIC adjustment and assuming no interim dividends at Neoenergia.
  • Iberdrola says the transaction would streamline Neoenergia’s structure, increase operational and financing flexibility, and lower costs tied to maintaining a market listing.
  • Neoenergia serves roughly 40 million customers across 18 states and the Federal District, with extensive distribution and transmission networks and about 3,800 MW of mainly hydro generation.