Iberdrola weighing sale of its telecommunications unit
Iberdrola, Spain’s largest utility, is reported to be considering selling its telecommunications unit and is consulting advisers for tips on favorable options; a final decision has not been made yet.
Iberdrola SA, Spain’s largest utility, is said to be considering the sale of its telecommunications unit. The sale could provide it with over 300 million euros, according to sources familiar with the matter.
Iberdrola is based in Bilbao, Spain. It is consulting advisers on favorable options on the matter, but no firms have been hired yet and no definite decision has been taken on the sale.
If Iberdrola decides in favor of selling, it may approach private-equity firms for the purchase of its assets, and Cinven and Gala Capital Partners are on the list of possible firms to turn to. In June, Cinven paid 510 million euros for the purchasing of Gas Natural’s telecommunications unit.
Representatives of Iberdrola, as well as Cinven and Gala Capital representatives, declined to comment.
The Iberdrola telecommunications unit comprises fiber-optic networks, as well as power-line communications, radio, transmission, switchboard, data-switching. It services the group’s businesses and additionally has rental agreements with customers and suppliers, as the information on the Iberdrola website points.
The company shares increased to 5.59 euros, by 0.2 percent, at 9:07 am Madrid time, which added to its gains reaching 21 percent, with the market value attaining 35.2 billion euros.
In July, Iberdrola announced a decline in its net income for the first half, to 1.5 billion euros, by 13 percent, following the entry into full effect of a reduction to renewable-energy subsidies.
