The Spanish energy giant that majority owns Orange-based utility company Avangrid Inc. is seeking to fully purchase the publicly traded company.
Iberdrola currently owns 81.6% of Avangrid. Under the “take private” proposal, Iberdrola would buy the outstanding shares for $2.49 billion, or $34.25 per common share.
Avangrid announced the proposed takeover early Thursday.
Avangrid’s board of directors has appointed a committee to review the offer, with help from independent legal and financial advisers.
Consummation of the deal would require approval of the committee as well as Avangrid shareholders who hold a majority of the outstanding shares of common stock that are not held by Iberdrola. and its affiliates, the company said.
“No decision has yet been made with respect to Avangrid’s response to the proposal or any alternatives thereto,” Avangrid’s announcement states. “Avangrid’s board cautions that it has only received a proposal, which does not constitute an offer or proposal capable of acceptance and may be withdrawn at any time and in any manner. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that the transaction proposed in the proposal or any other transaction will be approved or completed.”
Avangrid owns and operates eight electric and natural gas utilities, serving more than 3.3 million customers in New York and New England. It owns United Illuminating, which provides electricity to 17 Connecticut towns and cities near the shoreline, and Connecticut Natural Gas.
Avangrid employs more than 7,500 people and has roughly $44 billion in assets and operations in 24 U.S. states.
