Iberdrola agrees to buy 80% stake to take control of Finland's top power distributor
Iberdrola agrees to buy 80% stake to take control of Finland's top power distributor MADRID, July 21 (Reuters) - Spanish utility Iberdrola said on Tuesday it had agreed to buy an 80% stake for €2 billion ($2.28 billion) in a Dutch company, Suomi Power Networks MidCo B.V., which indirectly controls two concessionaires that together operate Finland's leading electricity distribution network.
The Dutch company owns 100% of the Finnish Caruna Group, comprising Caruna Oy and Caruna Espoo Oy companies, valued at approximately €5 billion ($5.70 billion), Iberdrola said in a statement to Spain's stock market regulator.
The transaction implies a total investment of around €2 billion for Iberdrola Energía Internacional, the group's international subsidiary.
The Spanish utility will pay a first €1 billion on completion of the deal, with a further deferred payment of approximately €1 billion due within 30 months, subject to the usual adjustments in this type of transaction.
Suomi Power Networks TopCo B.V. is controlled by Canada's Ontario Teachers' Pension Plan and funds managed by private equity firm KKR.
($1 = 0.8765 euros)
(Reporting by Corina Pons; Editing by Nia Williams)
((corina.pons@thomsonreuters.com; 0034 690725854; Reuters Messaging: corina.pons.thomsonreuters.com@reuters.net))
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