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‘Repsol could sell off Gas Natural stake’
Posted on Tuesday, 05 December 2017 12:22
Repsol is believed to be considering options for its 20.0 per cent stake in Gas Natural SDG valued at roughly EUR 3.70 billion, a little over a year since taking part in an equity sale in the Spanish distributor to Global Infrastructure Partners.
The hydrocarbon exploration-to-marketing group is said to be in the early stages of evaluating either reducing its participation or fully divesting to fund, among other things, investments in the renewables category.
El Economista noted Repsol has given Alantra a mandate to look for an acquisition in this sector as it wants to diversify its business into generating clean electricity to be prepared for an upcoming energy transition.
The newspaper added the oil and gas group is already looking into X-Elio, which was known as Gestamp Solar up until KKR bought an 80.0 per cent stake in the developer, builder and operator of photovoltaic plants in Spain and internationally.
Bloomberg’s comments echoed those of El Economista, with sources telling the news provider Repsol has talked about selling some or all of its 20.0 per cent to one or more investment funds, though the shareholder may also decide to keep the stake.
The decision to fully or partially exit Gas Natural would fit in with the gas and oil company’s strategic plan to trim debt, including raising funds through the sale of non-core assets.
Repsol said at the beginning of December the 10.0 per cent stake sold last year brought in proceeds of EUR 1.90 billion and was executed with no discount to the then market price of EUR 19.00 per share.
It added the remaining 20.0 per cent in the leading gas and power company is a “liquid investment” which “provides financial optionality”.
At a reported EUR 3.70 billion and assuming it is announced this year, the Gas Natural stake sale would be the sixth-largest deal targeting a company based in Spain in 2017, according to Zephyr, the M&A database published by Bureau van Dijk.
© Zephus Ltd