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Iberdrola Reaches Friendly Agreement to Acquire 100% of U.S. Utility Energy East

25/06/2007

The Board of Directors of the Spanish company unanimously endorsed the offer, which has already been approved by Energy East’s Board

IBERDROLA REACHES FRIENDLY AGREEMENT TO ACQUIRE 100% OF U.S. UTILITY ENERGY EAST

KEY ASPECTS

  • Energy East operates in the distribution, generation and supply businesses in five U.S. States: New York, Maine, Massachusetts, New Hampshire and Connecticut 
     
  • IBERDROLA will pay 3.4 billion euros in cash (28.50 US$ per share), as well as assume Energy East’s debt of 3 billion euros
     
  • The transaction, subject to approval by Energy East’s shareholders and to receipt of the necessary authorizations, is expected to close in 2008
     
  • IBERDROLA Chairman Ignacio Galán said “the transaction enhances our international expansion and consolidates our position as one of the world’s leading electricity companies”

IBERDROLA GROWTH

  • As a result of this transaction, for which contacts began in the summer of 2006, IBERDROLA will become one of the largest electricity operators in the world with an enterprise value, as of today, of approximately €83 billion
     
  • IBERDROLA will also increase its distributed energy volumes by 25%, with its customer base rising to over 27 million and will enhance its generating capacity to nearly 42,000 MW

Click here to view the press release in full.

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