Iberdrola (IBE.MC) is moving to buy out minority investors in its renewable energy unit, Iberdrola Renovables (IBR.MC), according to a Bloomberg story.
The parent company bid EUR 2.5 billion (US$3.5 billion) to regain full control of Renovables, which is the largest wind power producer in the world.
Iberdrola took the renewable energy division pubic in 2007, but with the share price down 48%–due largely to subsidy cuts in Spain–the company is taking advantage of the opportunity to step back in.
“The level at which it was trading was absurd,” Francisco Salvador, a strategist at Madrid-based FGA-MG Valores, told Bloomberg. “Since the market wasn’t recognizing its value, the deal has a certain logic.”
Read the full story at the link below.
Loading...