Iberdrola plans UK smart meter unit sale, sources say
Adds details on the mandate in the fourth paragraph
By Andres Gonzalez
LONDON, Dec 12 (Reuters) -Spanish utility Iberdrola IBE.MC is planning to sell its smart metering business in the UK and has lined up advisers, according to three sources with knowledge of the situation.
Iberdrola is looking to raise around 1 billion pounds ($1.27 billion), one of the people said.
The sources, speaking on condition of anonymity as the deal is private, cautioned that the sale process is at an early stage and no deal is guaranteed.
The company is working with RBC as advisor on the deal, the sources said.
Iberdrola and RBC declined to comment.
The move comes as Iberdrola seeks to capitalise on an uptick in interest from infrastructure funds in such businesses.
According to the 2023 accounts published on its website, ScottishPower, Iberdrola's subsidiary in the UK, manages over 2.5 million smart meters through its unit SP Smart Meter Assets Limited.
Earlier this month, private equity firm EQT EQTAB.ST and Singapore's sovereign wealth fund GIC acquired a majority stake in Calisen while Arcus' Horizon Energy Infrastructure merged with KKR's KKR.N Smart Metering Systems (SMS).
Smart meters provide real-time information about electricity consumption for households and suppliers, helping them to save money.
In August, Iberdrola agreed to purchase a majority stake in British power network Electricity North West (ENWL), in a deal that valued the company at approximately 5 billion euros, expanding the Spanish group's operations in Britain.
Iberdrola has been focusing on upgrading and expanding power grids like those controlled by ENWL, drawn by the steady and predictable returns these investments offer at a time when the renewable energy sector is grappling with high interest rates and debt costs.
($1 = 0.7845 pounds)
Reporting by Andres Gonzalez, editing by Anousha Sakoui and Elaine Hardcastle
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