Gamesa and Siemens have agreed on a merger agreement that integrates both the assets and commitments of the latter in exchange for Gamesa shares. To this end, the Basque company will proceed with a capital increase which will be fully subscribed by the German company. Siemens will hold 59% of the capital of the new company, with Gamesa`s current shareholders holding the remaining 41%. Among these shareholders, Iberdrola will hold an 8.1% share in the new Gamesa. At the close of yesterday`s stock exchange, the company, chaired by Ignacio Galon, owns 19.686% of Gamesa. As a result of the agreement with Siemens, both Iberdrola and Gamesa`s small shareholders receive a cash payment of $3.75 per share through an exceptional dividend that the German company pays in full. The company, chaired by Ignacio Galon, will receive 206.16 million euros, given that it currently holds 54.97 million euros in Gamesa. This represents a 26% increase in gamesa`s closing share price on January 28, 2016. According to the schedule, the merger between Gamesa and Siemens Wind Power is expected to take effect in March 2017. DISCLAIMERCe release was written exclusively by Iberdrola, S.A.

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