In today’s briefing:
- Iberdrola/Avangrid: Logical Move
Iberdrola/Avangrid: Logical Move
- Iberdrola SA (IBE SM) launches a $34.25/share cash offer to acquire the minorities (18.4%) in its US subsidiary Avangrid (AGR US). Premium is 6.8%, and the cost c. $2.5 billion.
- The market was awaiting this move since the cancellation of the PNM deal, which explains the recent rise in the share price of Avangrid.
- Gross spread is 4.5%. It seems investors are buying in the hope of an offer sweetening, knowing that Iberdrola has some cash available to spend from the profitable Mexico exit.
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