Banco do Brasil’s pension fund has sold its stake in Neoenergia SA to Iberdrola SA for EUR 1.92 billion ($2.22 billion).
The acquisition amounted to 30.29 percent of Neoenergia’s capital, Spanish renewables-focused utility Iberdrola said in a statement on its website. It said the purchase grows its stake in Neoenergia to about 84 percent.
“Neoenergia supplies electricity to nearly 40 million Brazilians through five distributors (in the states of Bahia, Rio Grande do Norte, Pernambuco, Sao Paulo, Mato Grosso do Sul and Brasilia) and 18 transmission lines, making it the country’s leading distribution group in terms of number of customers”, Iberdrola said. “Neoenergia has more than 725,000 kilometers of distribution lines and 8,000 kilometers of transmission lines and has 3,800 MW of renewable generation, mainly hydroelectric.
“With this operation, Iberdrola reaffirms its commitment to Brazil and takes a new step in its growth strategy based on the electricity grid business, in which it has 1.4 million kilometers of lines in the United States, the United Kingdom, Brazil and Spain”.
Across Brazil, Neoenergia has an installed capacity of 3.9 gigawatts through 44 wind farms, four hydro plants and the two solar plants, Neoenergia says on its website.
For the third quarter, Neoenergia reported BRL 924 million ($171.52 million) in profit and BRL 2.8 billion in EBITDA, up 10 percent and 13 percent year-on-year respectively.
“In the year to September, Neoenergia achieved BRL 7.6 billion in capex, of which BRL 4.8 billion was concentrated in distribution, which represents 31 percent more investment in this business compared to the same period last year”, it said in its quarterly report October 27.
Iberdrola has allotted Brazil EUR 7 billion in its 2024-28 global investment plan of EUR 58 billion, of which 65 percent is for regulated networks. The previous plan for the period was EUR 41 billion.
Distribution has been earmarked EUR 25 billion. Transmission gets EUR 12 billion, 95 percent of which is meant for the UK and the U.S., Iberdrola said in an online statement September 24.
“Generation and customers” get EUR 21 billion, 75 percent of which is for projects under construction. Of the EUR 21 billion, 38 percent is for offshore wind, 24 percent for onshore wind, 10 percent for solar and 10 percent for storage.
The UK has the biggest chunk of the plan at EUR 20 billion, followed by the U.S. at EUR 16 billion. Iberia gets EUR 9 billion. Other European Union markets and Australia get a total of EUR 5 billion.
Eighty-five percent of total investments are meant for “A-rated countries with stable, predictable and attractive regulatory frameworks”, Iberdrola said.
To contact the author, email jov.onsat@rigzone.com
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