As part of the Iberdrola Dividendo Flexible (scrip dividend) programme, the company is once again offering shareholders the opportunity to receive free shares. Iberdrola has set the number of allocation rights necessary to receive one free share at thirty-two, according to the notice submitted to the Spanish stock market regulator, the CNMV, today.

Shareholders opting to receive the cash dividend may sell their rights to the company or on the market. If they choose to sell to the company, Iberdrola guarantees payment of €0.146 per share, subject to a 21% tax withholding. Shareholders preferring to sell their rights on the market do not have to pay any withholding tax, but they also do not have a guaranteed price. This maintains shareholder remuneration in line with the amount paid by the company last year, and coincides with the traditional final dividend payment for 2011.

The calculations are based on a weighted average share price of €4.806 for the trading sessions on 22, 23, 27, 28 and 29 December.

Shareholders need not choose one single option. If they choose to receive all or part of their dividend in cash, they must instruct the custodian of their shares between 3 and 13 January 2012 to sell the rights to Iberdrola or between 3 and 17 January if they choose to sell their rights on the market. The default option will be to receive the shares free of charge.

Last November the company’s Board of Directors approved a capital increase for a maximum benchmark value of €901 million to implement this scrip dividend scheme.  This amount will be adjusted according to how many shareholders prefer to receive payment in cash.

The schedule for this new edition of the programme is as follows:

• 2 January 2012: Publication of the notification of the second rights issue in the BORME and record date for the free allocation rights.
• 3 January 2012: First day of trading of the new free allocation rights and start of period for requesting remuneration in cash by virtue of Iberdrola’s purchase commitment.
• 13 January 2012: End of period to request remuneration in cash through the sale of rights to Iberdrola at a guaranteed price.
• 17 January 2012: End of the trading period for new free allocation rights and acquisition of the same by Iberdrola from shareholders who have opted to receive cash.
• 20 January 2012: Cash payment to shareholders who have chosen to sell their rights to Iberdrola.
• 25 January 2012: New shares start trading on the continuous market.

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