In a recent development, Avangrid (NYSE: NYSE:AGR), a sustainable energy company, announced that its Board of Directors' Unaffiliated Committee received a non-binding acquisition proposal from its majority shareholder, Iberdrola (OTC:IBDRY), S.A. The proposal, dated March 6, 2024, suggests the purchase of all Avangrid shares not already owned by Iberdrola or its affiliates at a price of $34.25 per share in cash. Currently, Iberdrola holds approximately 81.6% of Avangrid's issued and outstanding common stock.
Following the receipt of the proposal, Avangrid's Board convened on the same day to authorize the Unaffiliated Committee to thoroughly review and assess the offer. The Committee is tasked with negotiating and potentially approving the proposal. They are supported by independent legal and financial advisors. The Committee will also consider any alternative proposals or strategic options that may present themselves to the Corporation.
The completion of the proposed transaction is contingent upon the approval of both the Unaffiliated Committee and the majority of Avangrid's shareholders, excluding those shares held by Iberdrola and its affiliates.
As of now, Avangrid has not made any decision regarding Iberdrola's proposal or any other potential alternatives. The Board has emphasized that the proposal is not a binding offer and may be subject to withdrawal at any moment. Furthermore, there is no certainty that a definitive offer will be extended, that any agreement will be reached, or that this proposed transaction—or any transaction—will ultimately be approved or consummated.
Investors and stakeholders are advised to await further announcements for any updates on this matter. The information presented is based on a press release statement and the facts contained within an SEC filing.
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