Chief Executive Ignacio Galan of Spanish utility Iberdrola was appointed chairman of Scottish Power April 25, the day after Iberdrola completed its takeover of the United Kingdom power generator.
Scottish Power’s board also approved the appointment of Jose Luis del Valle, director of strategy at Iberdrola, as Scottish Power chief executive officer.
Iberdrola completed its 11.6 billion pound (US$23.21 billion) offer for Scottish Power after the deal completed its passage through U.K. courts. (HNN 11/28/06) The takeover will create Europe’s third-biggest utility with a total capacity of about 40,000 MW, and a world leader in renewable energy including hydropower.
Iberdrola’s generation includes 21 major hydroelectric projects totaling 6,895 MW, while Scottish Power’s portfolio lists nine hydro projects totaling 564 MW.
Iberdrola said it bought 52.3 percent of Scottish Power shares for cash or debt or a combination. The remaining 47.7 percent of Scottish Power was swapped for 245.2 million new Iberdrola shares which were issued at 32.75 euros (US$44.67) per share. Iberdrola shares currently are trading at 37.36 euros (US$50.96).
Galan replaces Charles Miller Smith, who until this week was non-executive chairman. Del Valle, who will combine his new job with his current role at Iberdrola, replaces Australian Philip Bowman, who opted to leave the Glasgow-based company.
Iberdrola said it would present a new business plan in the fourth quarter to outline its post-Scottish Power strategy. Iberdrola has been focusing intently on renewable energy, buying Scottish Power, U.S. wind power firm CPV Wind Ventures for 55 million euros (US$75 million) earlier this month, taking control of Greek firm Rokas, and setting up a joint venture with Italy’s API.
Iberdrola has said it will keep the Scottish Power brand, with that company based in Glasgow, while the group will have its headquarters in Bilbao, Spain.