The Brazilian energy giant is born

#Neoenergia #business #economy

With the incorporation of the businesses of Elektro Holding, Neoenergia will manage 13.4 million supply points, with a concession area of 836,000 km2.

Iberdrola has completed one of the most important corporate operations in its recent history: with the incorporation of Elektro Holding in Neoenergia, the company now holds a share in the Brazilian and Latin American energy market giant after the approval of the operation in the General Shareholders' Meetings of both companies.

The resulting company — which groups the electricity distribution, transmission, wholesale and retail assets of Neoenergia and Elektro — will have the following shareholder structure: 52.45% will be controlled by Iberdrola; 38.21% will be held by Caixa de Previdência dos Funcionários do Banco de Brasil (Previ) and 9.35% by the Bank of Brazil.

The Board of Directors of Neoenergia has approved the listing of the company in the Brazilian stock exchange, according to the preliminary prospectus presented by the company to the country's stock market supervisor, the Comissão de Valores Mobiliários (CVM).

Employees of Neoenergia.Employees of Neoenergia.

The figures clearly show the new dimension acquired by Neoenergia:

  • It will offer its services to an area with a population of over 34 million people.
  • It will have 13.4 million supply points.
  • Its concession area reaches a surface of 836,000 km2 and it groups 13 states in total.
  • Its distribution network spans across 585,000 km.
  • Its regulated asset base is close to R$14,000 million (€3,657 million).
  • During 2016, the revenue reached R$30,000 million (€7,935 million).

Neoenergia, the Brazilian energy giant is born.#RRSSNeoenergia, the Brazilian energy giant is born.

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The company, which is almost entirely regulated, will also participate in the wind and hydraulic power generation business, with a total attributable capacity of 2,080 megawatts (MW) in operation and 1,460 MW under development, as well as in the thermo-electric generation business, with 530 MW in operation.

Commitment and trust

Iberdrola's Chairman, Ignacio Galán, has reiterated "Iberdrola's commitment to Brazil, a country in which it has been operating for the past 20 years and in which it has invested €13,600 million". Only in 2016, Iberdrola awarded goods and services supply contracts worth €1,270 million to 8,000 Brazilian suppliers. Galán has emphasised the company's trust in the future of Brazil "as demonstrated in our medium and long-term growth plans".