Specifically, the operation has been structured through a purchase and sale of shares representing approximately 85.6% of the share capital of ENW Holding and a monetary capital increase.
Iberdrola has signed the acquisition of 88% of the British electricity distribution company that operates in the United Kingdom Electricity North West (ENW) for an equity value of 2,100 million pounds (US$ 2,685 million), in an operation whose value The total of the company for 100% including debt amounts to 5,000 million euros (US$ 5,400 million), the energy company reported.
Specifically, the operation has been structured through a purchase and sale of shares representing approximately 85.6% of the share capital of ENW Holding and an increase in monetary capital in ENW Holding through which Iberdrola will acquire on the same date a additional participation of approximately 2.4% of the share capital of this company.
Once the operation is consummated, KDM Power Limited, a consortium led by the Japanese company Kansai Electric Power Co, current partner of ENW Holding, will retain a 12% stake in the share capital of ENW Holding.
Simultaneously with the contract for the purchase and sale of shares, Iberdrola and KDM have formalized the corresponding subscription and partner agreement in terms usual in operations of this nature and whose entry into force is conditional on the effective consummation of the operation.
The valuation of 100% of ENW Holding for the purposes of the operation - including the consolidated net financial debt of ENW Holding, in the terms reported by it - taking March 31, 2024 as a reference date, amounts to an approximate total of 4,208.4 million pounds sterling (US$5,382 million).
Thus, it will imply an approximate total disbursement by the company for 88% of the share capital of ENW Holding, as the purchase price and disbursement of the contributions in the capital increase, subject to certain customary adjustments in this type of operations on the closing date, of approximately 2,134 million pounds sterling (US$ 2,729 million). The operation is subject to the usual authorizations in this type of transaction.
UNITED KINGDOM, FIRST COUNTRY BY REGULATED ASSET BASE
In this way, the group chaired by Ignacio Sánchez Galán closes an acquisition that reinforces its commitment to networks in areas with 'A rating' and places the United Kingdom as the first country by regulated asset base for the company.
On July 24, on the occasion of the presentation of first half results, Galán himself already confirmed that Iberdrola would present a binding offer for ENW.
Along with Iberdrola, an alliance formed by Engie and the Canadian fund Caisse de Dépôt et Placement du Québec (CDPQ) had also shown their interest in going to the end in the bid for ENW.
The acquisition of ENW fit into Iberdrola's strategy, which had significant cash after renouncing the acquisition of PNM in the United States and the sale of its assets in Mexico for an amount exceeding 5,400 million euros (US$ 5,832). million), with capital gains of 1,165 million euros (US$ 1,258 million) after taxes.
Since the purchase of Scottish Power, in an operation that was carried out in 2007 for an amount of more than 17,000 million euros (US$ 18,361 million), the United Kingdom has been one of the destinations for Iberdrola's investment with nearly 36,000 million euros (US$ 38,883 million).
With this operation, the United Kingdom becomes the company's first country by network asset base, with some 14,000 million euros (US$ 15,121 million), followed by the United States with 13,300 million euros (US$ 14,365 million). .
Galán highlighted that this operation allows the company to continue with its "commitment to investments in electrical networks, a fundamental factor for the electrification and decarbonization of the economy and with countries with ambitious investment plans that have stable and predictable regulations."
"As a result of this transaction, our regulated network assets in the United Kingdom reach €14 billion (US$15,121 million), which, together with a similar amount in the United States, represents two-thirds of all the group's network assets. ", said.
SYNERGIES WITH SCOTTISH POWER
ENW represents a unique opportunity for Iberdrola, as it is the company that is located between Scottish Power's two distribution companies in Scotland.
This company distributes electricity to almost five million customers in the northwest of England, in cities such as Manchester, Lancaster and Barrow, and has 60,000 kilometers of electricity distribution networks.
In addition, the acquisition accelerates Iberdrola's commitment and growth in the networks business, making it the second regulated electricity transport and distribution company in the United Kingdom.
From now on, the energy group will distribute electricity to around 12 million people and will have more than 170,000 kilometers of networks. In addition, it will employ more than 8,500 people throughout the country.
Since the acquisition of Scottish Power in 2007, Iberdrola has had high growth and is the only vertically integrated energy company in the country.
Scottish Power is one of the largest investors in renewable energy in the country, owning and operating the southern Scotland transport network and the distribution networks in south-central Scotland and Merseyside, North Wales and Cheshire.
Currently, Iberdrola has more than 111,400 kilometers of installed power lines in the country and 40 onshore and two offshore wind farms in operation, with a total renewable capacity of more than 3,000 megawatts (MW) that supplies the equivalent of more than two million homes. This allows it to generate 100% of the energy free of emissions.
As part of its growth plans, the energy company is also building the East Anglia Three offshore wind farm, the second largest in the world, with a total capacity of 1,400 MW.
