Feb. 24 (Bloomberg) -- Qatar Investment Authority, the emirate’s sovereign wealth fund, increased its stake to 8.4 percent in Iberdrola SA, raising its investment in Spain’s largest electricity provider to 2.27 billion euros ($3 billion).
The fund based in Doha has surpassed all other stockholders except for Spanish construction company Actividades de Construccion & Servicios SA, which holds about 19 percent of Iberdrola, according to the utility’s annual corporate governance report covering 2011 activities released yesterday.
The Qatari fund bought its initial 6.2 percent holding in March and acquired the additional shares in a year Iberdrola fell 16 percent. That was its worst market performance since 2008, as the global economic slowdown damped demand for power and Spain slipped toward a second recession in four years.
Iberdrola, which yesterday said it may miss a 2012 profit target, fell 1.8 percent to 4.45 euros as of 2:44 p.m. in Madrid. That compared with a 0.3 percent gain in the 20-member benchmark Euro Stoxx Utilities Index.
The Spanish power company, also the world’s biggest owner of wind farms, trades at 8.9 times estimated earnings, cheaper than the 9.7 times ratio of the benchmark index, according to data compiled by Bloomberg.
A spokesman for the sovereign wealth fund in Doha wasn´t available for comment.