Monday, 14 March 2011 at 13:16, Reuters, Madrid
Spanish utility Iberdrola is to sell a 6.16 per cent stake to Qatar through a share issue that will dilute the stake of core shareholder ACS.
Iberdrola said on Monday it would issue 338 million new shares and sell treasury stock in order for Qatar Holding, the Gulf state's investment vehicle, to take the stake.
The issue will also finance Iberdrola's all-share bid for outstanding stock in its Iberdrola Renovables unit, which was announced last week.
Spanish builder ACS currently holds about 20 per cent of Iberdrola and has not ruled out buying more shares in its drive to win a seat on the utility's board.
Iberdrola said in a presentation that it had agreed with Qatar Holding to explore investment opportunities in Latin America, where it recently bought Brazilian utility Elektro.
The indebted Spanish utility said it needed a further €3 billion ($4.2 billion) in additional financing to complete its Brazilian investment goals and buy out minority shareholders in its 80 per cent-owned Iberdrola Renovables unit.
Iberdrola also said it planned to buy back up to 248 million shares to finance the buyout of Renovables.
Trading in the shares of Iberdrola was suspended ahead of the opening, with the suspension due to be lifted from 0900 GMT.
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