Iberdrola, sociedad anónima Iberdrola Renovables, sociedad

Iberdrola, sociedad anónima
(Absorbing company)
Iberdrola Renovables, sociedad anónima
(Absorbed company)
Pursuant to section 43 of Law 3/2009, of April 3, on Structural Modifications of Corporations (Ley 3/2009, de 3 de abril, sobre
Modificaciones Estructurales de las Sociedades Mercantiles), it is announced that the shareholders at the General Shareholders’
Meetings of Iberdrola, sociedad anónima, held upon first call in Bilbao on May 27, 2011, and of Iberdrola Renovables, sociedad anónima,
held upon first call as well, in Valencia on May 30, 2011, have, following the approval of the Common Terms of Merger drawn up, signed
and approved by their respective Boards of Directors at their meetings held on the March 22, 2011, and of their respective Merger
Balance Sheets as at December 31, 2010, approved the merger by absorption between Iberdrola, sociedad anónima and Iberdrola
Renovables, sociedad anónima by means of the absorption of the latter by the former, with the termination by dissolution without
liquidation of Iberdrola Renovables, sociedad anónima and the en bloc transfer of all of its assets to Iberdrola, sociedad anónima, which
shall acquire by universal succession all of the rights and obligations of Iberdrola Renovables, sociedad anónima.
The merger resolution has been approved on the terms set out in the Common Terms of Merger, which was deposited with the
Commercial Registries of Vizcaya and Valencia on March 25 and 29, respectively.
1. SHARE EXCHANGE RATIO
The approved exchange ratio for the shares of the entities participating in the merger, which has been determined based on the actual
value of the corporate assets of Iberdrola, sociedad anónima and Iberdrola Renovables, sociedad anónima, is 0.30275322 shares of
Iberdrola, sociedad anónima, each having a par value of seventy five euro cents (€0.75) per share, for each share of Iberdrola
Renovables, sociedad anónima, each having a par value of fifty euro cents (€0.50), without any cash compensation.
2. SHARE EXCHANGE PROCEDURE
In order to cover the exchange for the merger, Iberdrola, sociedad anónima will deliver to the shareholders of Iberdrola Renovables,
sociedad anónima treasury shares as per the exchange ratio set forth above. As a result, Iberdrola, sociedad anónima, will not carry out
the share capital increase in relation with the merger, set out under section four of item fifteen on the agenda of the General
Shareholders’ Meeting held on the May 27, 2011, and, therefore, will not issue new shares as a result of the merger.
The exchange of shares of Iberdrola Renovables, sociedad anónima for shares of Iberdrola, sociedad anónima will take place upon
registration of the merger with the Mercantile Registry of Vizcaya, and will be effected as from the date indicated in the
announcements to be published in widely-circulated newspapers in the provinces of Vizcaya and Valencia, in the Official Gazettes
(Boletines Oficiales) of the Spanish stock exchanges and in, if applicable, the Official Gazette of the Commercial Registry (Boletín
Oficial del Registro Mercantil).
Shareholders holding shares representing a fraction of the number of shares of Iberdrola Renovables, sociedad anónima, set as the
exchange ratio may acquire or transfer shares in order to exchange them in accordance with such exchange ratio. Without prejudice
thereto, the companies participating in the merger have established mechanisms to facilitate the exchange for those shareholders of
Iberdrola Renovables, sociedad anónima holding a number of shares that does not allow them to receive a whole number of shares of
Iberdrola, sociedad anónima under the agreed exchange ratio, including the appointment of an “odd-lot agent” (agente de picos).
The exchange of shares of Iberdrola Renovables, sociedad anónima for shares of Iberdrola, sociedad anónima will be implemented
through the institutions participating in the Sociedad de Gestión de los Sistemas de Registro, Compensación y Liquidación de
Valores, sociedad anónima unipersonal (Iberclear) acting as depositaries thereof pursuant to the provisions set forth in the book-entry
system in accordance with the provisions of Royal Decree 116/1992, of February 14 (Real Decreto 116/1992, de 14 de febrero), and
with the application of the provisions of section 117 of the Restated Text of the Companies Law, approved by the sole section of Royal
Legislative Decree 1/2010, of July 2 (Texto Refundido de la Ley de Sociedades de Capital, aprobado por medio del artículo único del
Real Decreto Legislativo 1/2010, de 2 de julio), to the extent applicable.
In accordance with section 26 of Law 3/2009, of April 3, on Structural Modifications of Corporations (Ley 3/2009, de 3 de abril, sobre
Modificaciones Estructurales de las Sociedades Mercantiles), there will be no exchange of the shares of Iberdrola Renovables, sociedad
anónima currently held by such company, by Iberdrola, sociedad anónima or by any other persons acting in their own name but on
behalf of Iberdrola Renovables, sociedad anónima, or Iberdrola, sociedad anónima.
As a consequence of the merger, the shares of Iberdrola Renovables, sociedad anónima will be cancelled.
3. BY-LAW AMENDMENTS
No amendments to the by-laws of Iberdrola, sociedad anónima or Iberdrola Renovables, sociedad anónima, have been approved as a
result of the merger. Nonetheless, it is stated for the record that the amendment of certain articles of the by-laws and the General
Shareholders’ Meeting Regulations of Iberdrola, sociedad anónima, as well as the approval of new restated texts thereof, were
respectively submitted for approval of the General Shareholders’ Meeting of Iberdrola, sociedad anónima under items thirteen and
fourteen on its agenda and that such amendments, which are available to the public on the corporate web page of Iberdrola, sociedad
anónima, (www.iberdrola.com), were finally approved.
4. DATE AS FROM WHICH THE SHARES TO BE DELIVERED IN EXCHANGE WILL GIVE THE RIGHT TO PARTICIPATE IN THE CORPORATE
EARNINGS, DATE OF ACCOUNTING EFFECTS OF THE MERGER, ANCILLARY OBLIGATIONS AND SPECIAL RIGHTS
The shares delivered by Iberdrola, sociedad anónima to cover the exchange will give the holders thereof the right to participate in
Iberdrola, sociedad anónimas’s earnings as from the date of delivery and upon the same terms as the other Iberdrola, sociedad
anónima’s shares outstanding on such date.
January 1, 2011 has been set as the date from which the transactions of Iberdrola Renovables, sociedad anónima shall be deemed for
accounting purposes to have taken place on behalf of Iberdrola, sociedad anónima.
There are no ancillary obligations, special shares or other special rights other than the shares at Iberdrola Renovables, sociedad
anónima.
The shares of Iberdrola, sociedad anónima delivered to the shareholders of Iberdrola Renovables, sociedad anónima will not give the
holders thereof any special rights.
No benefits of any type will be extended either to the directors of either of the entities participating in the merger or to the
independent expert participating in the merger process.
5. SPECIAL TAX REGIME
The General Shareholders’ Meetings of Iberdrola, sociedad anónima and Iberdrola Renovales, sociedad anónima have approved,
respectively, to subject the merger to the special tax regime established in Chapter VIII of Title VII and the second additional provision
of the Restated Text of the Corporate Income Tax Law approved by Royal Legislative Decree 4/2004, of March 5 (Texto Refundido de la
Ley del Impuesto sobre Sociedades, aprobado por el Real Decreto Legislativo 4/2004, de 5 de marzo).
For such purpose, and pursuant to the provisions of section 96 of such Restated Text, notice of the merger will be given to the Ministry
of the Economy and Treasury in the form and within the deadline established in the relevant regulations.
6. RIGHT TO INFORMATION
As set out in section 43 of Law 3/2009, of April 3, on Structural Modifications of Corporations (Ley 3/2009, de 3 de abril, sobre
Modificaciones Estructurales de las Sociedades Mercantiles), it is expressly stated for the record, the right attributed to the
shareholders and creditors of each of the companies participating in the merger to obtain the full text of the resolution approved and
of the Merger Balance Sheet of each of the abovementioned companies, which are available to them at each of the company’s
registered offices and on the corporate websites of Iberdrola, sociedad anónima, (www.iberdrola.com) and Iberdrola Renovables,
sociedad anónima, (www.iberdrolarenovables.com).
7. RIGHT TO OPPOSE
Likewise, it is expressly stated for the record the right attributed to the creditors of the merging companies to oppose the merger
under the terms of section 44 of Law 3/2009, of April 3, on Structural Modifications of Corporations (Ley 3/2009, de 3 de abril, sobre
Modificaciones Estructurales de las Sociedades Mercantiles) during a one-month period from the publication of the last announcement
of merger.
In Valencia, on May 30, 2011,
Santiago Martínez Garrido
Secretary of the Board of Directors of Iberdrola Renovables,
sociedad anónima
In Bilbao, on May 30, 2011,
Julián Martínez-Simancas Sánchez
General Secretary and Secretary of the Board of Directors of Iberdrola,
sociedad anónima