Iberdrola and Avangrid Merger Recommended by ISS and Glass Lewis
- Institutional Shareholder Services Inc. (ISS) and Glass, Lewis & Co. LLC have both recommended that Avangrid shareholders vote in favor of the merger agreement with Iberdrola.
- The merger proposal is seen as beneficial, providing a market premium to investors and ensuring appropriate governance through an independent committee's evaluation.
- Shareholders are urged to support the merger to avoid the potential negative consequences of not voting, which could be interpreted as opposition to the proposal.
Avangrid, a sustainable energy company, has received endorsements from two prominent independent proxy firms, ISS and Glass Lewis, regarding its merger with Iberdrola. This recommendation, made public on May 17, 2024, highlights the perceived advantages of the merger, including a market premium for investors. The independent Unaffiliated Committee of Avangrid's Board of Directors played a crucial role in evaluating the merger, ensuring that the interests of unaffiliated shareholders were prioritized. The committee's assessment, supported by independent legal and financial advisors, concluded that the merger was fair and beneficial. This evaluation is particularly significant given the substantial capital investment requirements Avangrid faces through 2030, which could necessitate dilutive equity issuances or reductions in dividends if the merger does not proceed. The Board of Directors unanimously approved the merger agreement, emphasizing the importance of shareholder participation in the voting process. A failure to vote is equated to a vote against the merger, which could jeopardize the potential benefits outlined in the proposal. As Avangrid operates across 24 U.S. states with a strong commitment to sustainability, the merger with Iberdrola is positioned as a strategic move to enhance its operational capabilities and financial stability, ultimately benefiting its shareholders and supporting its long-term growth objectives.