Iberdrola is negotiating to buy the US energy supplier Avangrid.
The Spanish group said it has made a non-binding offer to buy all shares in the US energy company that it does not already own for around $2.49 billion. That price represents $34.25 per common share, Iberdrola said. According to the Avangrid website, Iberdrola currently owns 81.5 percent of the energy company.
Iberdrola said the transaction is in line with its strategy to expand its presence in stable markets where it can invest in electricity networks. The transaction is subject to negotiations and due diligence, as well as regulatory approval and support from Avangrid shareholders, Iberdrola said.
Avangrid shares temporarily rose 13.00 percent to $36.25 in NYSE trading on Thursday.
Iberdrola asked about upgrade by Morgen Stanley
The Iberdrola share ultimately gained 2.64 percent to 11.10 euros in Madrid. The US investment bank Morgan Stanley had previously upgraded the shares from “Equal-weight” to “Overweight” before the capital markets day on March 21st. According to a study, analyst Robert Pulleyn sees a good time to enter the market as concerns about the sale of assets in Mexico have been dispelled and the share price has already fallen significantly over the course of the year so far. In a follow-up study, the expert mentioned the planned takeover of the outstanding shares in the US subsidiary Avangrid. In his opinion, the transaction will not significantly change the Spanish company’s net debt profile.
By David Sachs
BARCELONA (Dow Jones) / MADRID (dpa-AFX Broker)
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