Bilbao-based renewable energy giant Iberdrola, parent of Scottish Power, said it has submitted a takeover bid for the 16.2% of Brazilian subsidiary Neoenergia’s share capital it does not already own — with the aim of delisting it.

Iberdrola already controls 83.8% of Neoenergia’s capital.

Neoenergia supplies electricity to nearly 40 million Brazilians via five distributors in the states of Bahia, Rio Grande do Norte, Pernambuco, Sao Paulo, Mato Grosso do Sul and Brasilia and 18 transmission lines.

Neoenergia, which is present in 18 states and the Federal District of Brazil, has more than 725,000 kilometers of electricity distribution lines and 8,000 kilometers of transmission lines and has 3,800 MW of renewable generation, mainly hydroelectric.

Globally, Iberdrola already has 1,400,000 kilometres of electricity transmission and distribution lines in the United States, the United Kingdom, Brazil and Spain.

“Iberdrola offers the same price paid in the recent acquisition of Caixa de Previdência dos Funcionários do Banco do Brasil (PREVI) stake corresponding to 30.29% of the capital – 32.5 Brazilian reais per share – updated by the official Brazilian interest rate, called SELIC,” said Iberdrola.

“A total disbursement (before its update according to the evolution of the SELIC rate and assuming that Neoenergia does not pay any intermediate dividend) of around 1,030 million euros is expected.

“The transaction will simplify Neoenergia’s structure, providing its operations and financing with greater flexibility and reducing costs arising from maintaining the trading of shares on the market.

“With this transaction, Iberdrola reaffirms its commitment to Brazil and to a growth model based on electricity grids, which account for 90% of Neoenergia’s business.”