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.
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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.