Iberdrola boosts stake in Neoenergia to 83.8% after $2.2bn purchase

Published 11/09/2025, 09:10
© Reuters.

Investing.com -- Iberdrola said on Thursday it has acquired a 30.29% interest in its Brazilian subsidiary Neoenergia from pension fund Previ for 11.95 billion reais ($2.21 billion).

The purchase increases the Spanish utility’s holding in Neoenergia to 83.8%.

The transaction was priced at BRL32.5 per share, representing a 15% premium over Neoenergia’s previous close of BRL28.2.

Jefferies analysts noted the deal values Neoenergia at a price-to-earnings multiple of 10 times based on FY2026-27 consensus estimates.

“We see this deal as EPS accretive, with a potential +2% impact on IBE fiscal year 2026 (FY26) net income. Strategically, this deal is to reinforce IBE’s strategy of investing in regulated businesses,” they said.

“Overall, we see the update as a small positive,” the analysts added.

Earlier this year, Neonergia reported net income of R$1.6 billion in the second quarter and R$2.6 billion for the first half of 2025, up 100% and 36% year-on-year, respectively. The performance was supported by R$869 million in non-recurring tax effects.

Cash EBITDA came in at R$2.6 billion in the quarter and R$5.4 billion in the half, representing growth of 7% and 2% compared with the same periods in 2024.

The company highlighted its ongoing focus on cost discipline, with operating expenses rising 4% in the quarter and in the half, broadly in line with inflation and business growth.

Capital expenditure totaled R$2.8 billion in the second quarter, of which R$1.7 billion was directed to distribution.

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