Iberdrola has formalized the sale of its Hungarian subsidiary, Iberdrola Renovables Magyarország KFT, for a total of 171.2 million euros. The transaction includes the transfer of 158 megawatts (MW) of installed wind power capacity and marks the end of the company’s direct presence in the Central European country.
Iberdrola sells regulated assets to the free market
The buying consortium is composed of Premier Energy, which also recently acquired Iberdrola’s assets in Romania, and the Hungarian group iG TECH CC. Through this agreement, the Spanish company will receive the full amount of the transaction, including an early dividend prior to final closing, subject to regulatory approvals.
Since its entry into Hungary in 2008, Iberdrola has developed a wind grid that has operated for 15 years under a regulated tariff regime. Currently, 124 MW are already integrated into the wholesale electricity market, and the remaining 34 MW will be integrated in less than a year. This situation has driven the strategic timing of the divestment.
International reorganization and focus on key markets
The exit from the Hungarian market is part of Iberdrola’s global strategy to concentrate its resources in priority geographies such as the United States, the United Kingdom and Australia. The objective is to reinforce revenue stability through investments in regulated networks and projects with long-term contracts.
This transaction is in addition to other recent operations of the group, such as the consolidation of its majority stake in Neoenergia (Brazil), the sale of its operations in Mexico, and its alliance with Masdar to develop the East Anglia Three offshore wind farm. East Anglia Three in the United Kingdom, with a joint investment of 5.2 billion euros.
Source and photo: Iberdrola
