February 5 (Renewables Now) - Spanish power utility Iberdrola SA (BME:IBE) will today shed its entire stake in wind turbine maker Siemens Gamesa Renewable Energy SA (BME:SGRE) to Siemens AG (ETR:SIE).
Both Iberdrola and Siemens Gamesa filed the same document with Spanish market regulator CNMV on Tuesday evening announcing the sale of the 8.07% stake held by the power company’s wholly-owned unit Iberdrola Participaciones SA to the German industrial major.
Iberdrola will pocket EUR 1.1 billion (USD 1.2bn) from the transaction, or EUR 20 per Siemens Gamesa share, according to the filing.
The companies said the sale and purchase will close today at the agreed price.
The divestment has resulted in the parties terminating their 2016 shareholder agreement without any claims from either side. Iberdrola’s director will remove himself from the Siemens Gamesa board once the deal is closed.
In addition, Iberdrola and Siemens have agreed not to acquire any financial instruments, shares included, issued by their respective groups for the next 24 months.
The filing further states that Iberdrola, Siemens and Siemens Gamesa will expand their business relationships in onshore and offshore wind power, digital grid and load management, or other renewable energy and networks areas, under a separate six-month collaboration agreement.
Siemens Gamesa came into existence in 2017 when Spanish turbine maker Gamesa merged with Siemens Wind Power.
(EUR 1.0 = USD 1.105)