By Cristina Roca

Iberdrola SA (IBE.MC) said Tuesday that it has agreed to sell its Scottish Power Generation Holdings Ltd U.K. business to Drax Group PLC (DRX.LN)'s Drax Smart Generation Holdco Ltd.

The Bilbao, Spain-based energy company said it will sell 100% of Scottish Power's capital to Drax for 702 million pounds ($922.3 million).

Iberdrola said it expects the sale to have a positive impact on its 2018 earnings, which will be quantified and announced when the transaction closes.

To finance the acquisition, Drax has entered into "a fully-underwritten GBP725 million secured acquisition bridge facility agreement," the British electrical power company said in a statement.

Scottish Power has a total generation capacity 2,566 megawatts of electricity, Iberdrola said.

Write to Cristina Roca at cristina.roca@dowjones.com; @_cristinaroca

(END) Dow Jones Newswires

October 16, 2018 02:42 ET (06:42 GMT)

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