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Iberdrola plans to delist green power division

Power company's offer to shareholders is well below Renovables' listing price

Spanish power group Iberdrola said Tuesday it had offered to buy out minority interests in its renewable energy division Iberdrola Renovables at almost half the price it listed the company in December 2007.

With the economy still struggling to recover from its worst recession in decades and the stock market at levels well below those at the time of Renovables' listing, Iberdrola is offering 2.978 euros per share for its green power unit, a discount of 44 percent to its listing price, but 16.7 percent above the average price of the past six months.

According to the offer, Renovables shareholders would receive 1.191 euros per share in the form of a cash dividend with the rest in the form of Iberdrola shares on the basis of 0.299 Iberdrola shares for every Renovables share. Iberdrola said Renovables' share price does not reflect its growth potential.