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Up to now, the Group had a 53.5% stake in the company
Iberdrola, to reach 84% of Neoenergia’s share capital in Brazil after the purchase of PREVI’s stake for 1.88 billion euros
Ignacio Galán, Iberdrola's Executive Chairman, in his office.
Iberdrola, to reach 84% of Neoenergia’s share capital in Brazil after the purchase of PREVI’s stake for 1.88 billion euros [PDF] - The price agreed for the 30.29% stake in Neoenergia will imply a cash consideration of 11.95 billion Brazilian reais
- The Group strengthens its investment focus on regulated Networks businesses
- Neoenergia is the first electricity distribution Group in Brazil by number of customers and provides service to 40 million Brazilians:
- It has five distribution licenses in Bahia, Rio Grande do Norte, Pernambuco, Sao Paulo, Mato Grosso do Sul and Brasilia with attractive regulatory frameworks
- The company expects a strong increase in Network investments in the coming years due to increasing demand and electrification
Iberdrola has reached an agreement to acquire the stake of Caixa de Previdência dos Funcionários do Banco do Brasil (“PREVI”) in Neoenergia, reinforcing its position as majority stakeholder. The transaction contemplates the purchase of PREVI’s 30,29% stake in Neoenergia, so that Iberdrola will control 84% of the company’s share capital, approximately.
The price agreed, 32.5 Brazilian reails per share, will imply a cash consideration of 11.95 BRL billion – around 1.88 billion euros.
The transaction is subject to the applicable regulatory approvals and is expected to be closed in the next months.
Neoenergia supplies electricity to close to 40 million Brazilians through 5 distribution companies (in the states of Bahia, Rio Grande do Norte, Pernambuco, Sao Paulo, Mato Grosso do Sul and Brasilia) and 18 transmission lines, making it the largest distribution Group in Brazil by number of customers. Neoenergia has more than 725,000 km of distribution lines and 8,000 km of transmission lines, as well as 3,800 MW of renewable generation, mainly hydroelectric.
In 2024, Neoenergia became the Brazilian company invested most in basic infrastructures across the country, more than 9.8 billion reais (1.5 billion euros), to expand, upgrade, maintain and automatize its networks.
In the coming years, the company faces strong growth prospects thanks to the expected increase in investments in regulated Networks with attractive regulatory frameworks.
The operating excellence of Neoenergia’s distribution companies was recently reflected in the awards granted by ABRADEE, the Brazilian Association of Distribution Companies, in which two of its subsidiaries (Neoenergia Cosern, in Rio Grande do Norte, and Neoenergia Elektro, in Sao Paulo and Matto Grosso do Sul) were ranked top 1 and 2 as “Best distribution company”. In total, Neoenergia obtained 8 awards out of 12: ‘Best company’ in Brazil and in the North East region (obtained by Neoenergia Cosern, the Rio Grande do Norte distribution company); best distribution company in the South East, best Management Quality, best Innovation Management and best Operating Management (obtained by Neoenergia Elektro) and best Performance Evolution (to Neoenergia Brasilia, in recognition of the company’s strong operating improvement following its integration in the Group in 2020).
With this transaction, Iberdrola takes a further step in its growth strategy based on electricity Networks businesses, with 1.4 million km of power lines in the US, the UK, Brazil and Spain.