Renta 4 | Iberdrola would have reached an agreement with Axa for the development of four offshore wind farms in France, with a total of 1.750MW. Via the agreement, the French firm would have a minority stake in the event the projects are awarded to Iberdrola in the auctions expected to take place in 2023. The implementation is planned for 2030.
Valuation:
This is a repeat of the strategy of giving an entree to a financial partner via minority stakes, allowing for a lightening of the investment load and thus a reduction of the pressure on Iberdrola’s leverage with the aim of taking advantage of a larger number of opportunities. We will see how this strategy is completed during the Capital Markets Day. We do not expect any impact for the time being.
T.P. 12,73 euros/share. Recommendation Overweight.
