The company plans to sell the shares through a capital increase, to be followed by an initial public share offer which will take place in Q4 2007. Iberdrola’s board has also approved plans to reorganize the subsidiary so that it incorporates all of Iberdrola’s renewable-energy related subsidiaries as well as those of its ScottishPower arm.
Iberdrola said that the decision to reorganize Ibernova and subsequently sell 20% of the unit’s capital is in line with its strategy of focusing on renewables and, in particular, wind power, while conserving financial strength.
The Spanish utility believes that listing up to 20% of Ibernova’s shares will increase the unit’s visibility on the European energy market, while also providing resources to finance growth, without affecting the financial strength of the group as a whole.
Iberdrola’s recent acquisition of UK utility ScottishPower furnished the company with total renewable capacity of more than 6,500MW and a renewable pipeline of almost 38,000MW.
