Drax Group Completes Acquisition of Scottish Power Assets

Iberdrola has announced the sale of its entire stake in Scottish Power Generation to the British Drax Group for an amount of about 777.6 million euros to the CNMV on Wednesday, although the transaction was closed on December 31, once they were completed.

The suspensive conditions to which the operation was subject. The company thus undoes all non-renewable assets of its business in the United Kingdom. The Iberdrola energy subsidiary, Scottish Power Renewables, thus becomes the first 100% renewable company in the country.

This sale is part of the program of asset rotation worth 3,000 million euros announced by the energy group within its strategic plan 2018-2022. To achieve the objectives of this plan, Iberdrola has already closed the sales of the gas storage business in the United States, the minority stake in Trime and the solar thermal plant in Puertollano (Ciudad Real), transactions amounting to some 1,200 million euros.

The purchase price is subject to customary adjustments in this type of transaction once the balance sheet of Scottish Power Generation is available as of December 31, 2018, as well as a mechanism for sharing risks and benefits according to the level of payments by capacity not received by Scottish Power Generation until September 30, 2019.

Iberdrola has specified that the impact of the operation on the consolidated results for the fiscal year 2018 will be determined in the coming weeks once more information about these adjustments becomes available.

In the United Kingdom, Iberdrola already has an installed or under construction capacity of 2,700 MW, in addition to a project portfolio of more than 3,000 MW. Of this capacity, the majority -2,900 MW- corresponds to offshore wind projects.

These new developments would be added to the East Anglia One park, currently under construction, which will have a capacity of 714 MW and will be the largest offshore wind farm in the world when it becomes operational in 2020.