Strong shareholder response to Iberdrola’s takeover bid for Neoenergia

Iberdrola’s stake in Neoenergia will reach 98 % following the acquisition of a further 14,2 % at 33.7 reais per share
The transaction, which involves an outlay of 5.826 million reais, has a positive impact on the Group’s results and has been completed at attractive multiples
The offer stands out as one of the largest delisting transactions to date in Brazil, and for achieving one of the highest acceptance rates in the country
Iberdrola could acquire 100% of the company in the coming weeks if the right of exclusion is exercised

Following the auction relating to the takeover bid launched on 24 November – a standard procedure for this type of transaction in Brazil – Iberdrola will acquire an additional 14,2 % stake in its subsidiary Neoenergia, bringing its total stake to 98 %.

The price offered by Iberdrola was 33.77 Brazilian reais per share, meaning the transaction will involve a payment of 980 million Brazilian reais, approximately 5.826 million euros. The price is equivalent to the price paid last October for the acquisition of the 30.29% stake in PREVI (32.5 reais per share), adjusted for Brazil’s official interest rate (SELIC), and reduced by the special dividend declared by Neoenergia on 31 December 2025.

Furthermore, Iberdrola could acquire 100 % of Neoenergia’s share capital before the end of the second quarter of 2026 as a result of the Brazilian company potentially exercising its right of squeeze-out.

The offer stands out as one of the largest delisting transactions to date in Brazil, and for achieving one of the highest acceptance rates in the country.

The transaction, completed at very attractive multiple valuations, has had a positive impact on Iberdrola’s results from the very first year and reinforces its commitment to Brazil and to growth centred on electricity networks, which account for 90 % of Neoenergia’s business.

Neoenergia supplies electricity to around 40 million Brazilians through five distribution companies in the states of Bahia, Rio Grande do Norte, Pernambuco, São Paulo, Mato Grosso do Sul and Brasília, as well as via 18 transmission lines, making it the country’s leading distribution group in terms of customer numbers. Neoenergia, which operates in 18 states and the Federal District, has over 725,000 kilometres of electricity distribution lines and 8,000 kilometres of transmission lines, and has 3,600 MW of renewable generation capacity, mainly hydroelectric.

This transaction comes on top of those carried out by Iberdrola so far this year, notably the acquisition of the Ararat wind farm in Australia, the sale of its onshore generation business in France, the sale of small-scale hydroelectric and slurry assets in Spain, the sale of its assets in Hungary, and the addition of 650 MW of solar power to the joint venture with Norges.

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