Analysts have applauded the closing of the sale by Iberdrola of its combined cycle business in Mexico for about 6.2 billion dollars (about 5.717 million euros) and estimate capital gains on the operation of about 2 billion euros.
Specific, Alantra analysts predict “significant” capital gains for the energy company generated with the agreement with Mexico around that figure.
“Overall, the agreement is good news for Iberdrola, as it reduces exposure to a country with high regulatory risk and low growth prospects and will help reduce debt and finance future growth plans,” they stressed.
In addition, JP Morgan considered that this is “a positive agreement” for Iberdrolaas it allows “significant flexibility” in the management of its balance sheet and capital.
In the same sense, Morgan Stanley foresees “a positive market reaction” to the confirmed closing of the sale in Mexico, since the uncertainty over the 5.7 billion euros of cash receipts “has weighed” on the stock to date.
In this regard, with the closing of the operation, Iberdrola’s “more solid” balance sheet stood out, providing the group with “more flexibility” in view of an increase in its investments before the Capital Markets Day on March 21.
Last Monday, Iberdrola closed the sale of 55% of its business in Mexico for approximately 6,200 million dollars (5,717 million euros) in an operation that involves the sale of 13 generation plants with an installed capacity of 8,539 MW, of which that he 99% corresponds to gas combined cycles and 87% to plants that operate under the Independent Energy Producer regime. contracted with the Federal Electricity Commission (CFE).
Strengthens liquidity position
Likewise, GVC Gaesco analysts pointed out that with this transaction, Iberdrola basically sells the business that involved the sale of electricity to the State, “but will continue to provide service to private clients through installed renewable capacity of more than 1.2 gigawatts (GW) and projects that add up to a portfolio of 6 GW“.
“The transaction is positive for the company as it strengthens its liquidity position, providing resources for its solid investment plan of 12 billion euros per year. It has also more than met its asset sale targets for 2023,” they added.
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