Renta 4 | Agreement (subject to the relevant regulatory approvals) to purchase 30.29% of Neoenergia, the listed Brazilian subsidiary, with Caixa de Previdência dos Funcionários do Banco do Brasil for an amount of R$11.95 billion (€1.88 billion) at a price of R$32.5 (equivalent to approximately €5.12) per share, subject to possible adjustments.
This price represents a premium of 15% over the last trading price, equivalent to an EV/EBITDA multiple of 5.8x for 2026 and a P/E ratio of 10x for 2026. This transaction values 100% of the equity of the company at €6.2 billion versus Renta 4’s assessment of €12 billion.
With this transaction, financed through asset rotation and a partnership strategy, Iberdrola acquires 84% of Neoenergia’s capital, strengthening its presence in one of its main growth vectors, networks, which account for nearly 90% of this subsidiary’s EBITDA.
Assessment: The transaction, which we estimate will enable additional growth in the group’s net profit of more than 2.5%, consolidates its position in one of the most stable and profitable regulatory frameworks with favourable growth prospects in the networks segment, at an EV 31% below our valuation, which is why we believe that the transaction should be well received by the share price.
Target price €16.60/share and recommendation to hold.
