Iberdrola Offers to Acquire Avangrid Shares, Boosting Stock Price by 13%

Friday, 8 March 2024, 00:56

Iberdrola, Avangrid's majority stakeholder, has proposed to acquire the remaining 18.4% stake it doesn't own, leading to a 13% surge in Avangrid's stock. The non-binding $2.49 billion takeover offer values Avangrid at a 6.8% premium, prompting speculation on the board's decision and potential shareholder actions. Investors are advised to consider alternate offers and strategic decisions before deciding on Avangrid investments.
https://store.livarava.com/e5f9b920-dce7-11ee-b8d7-5254a2021b2b.jpe
Iberdrola Offers to Acquire Avangrid Shares, Boosting Stock Price by 13%

Iberdrola wants to take Avangrid private

In a press release earlier today, Avangrid announced it has received a non-binding proposal from electric utility giant Iberdrola to acquire all issued and outstanding common shares of Avangrid it doesn't already own for $34.25 in cash per share -- or a total of $2.49 billion. Iberdrola already owns around 81.6% of Avangrid's outstanding shares.

What's next for Avangrid investors?

  • The offer values Avangrid represents a modest 6.8% premium from Avangrid's closing price yesterday.
  • There's no guarantee that the offer will result in an official deal, and Avangrid's board says no official decision has been made regarding whether it will accept the offer.
  • Avangrid's board also said an "Unaffiliated Committee" will review the proposal for potential approval (or disapproval), "as well as any other alternative proposals or other strategic alternatives that may be available to Avangrid."

The potential for Avangrid to explore other competitive offers or strategic alternatives explains why shares closed well above the proposed acquisition price today. If Avangrid's board decides to accept the deal, shareholders will simply receive $34.25 in cash for every share of Avangrid they own at the time of closing.

Should you invest $1,000 in Avangrid right now?

Before you buy stock in Avangrid, consider this:

  • The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Avangrid wasn’t one of them.
  • The 10 stocks that made the cut could produce monster returns in the coming years.
  • Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


Related posts


Newsletter

Get the most reliable and up-to-date financial news with our curated selections. Subscribe to our newsletter for convenient access and enhance your analytical work effortlessly.

Subscribe