Spain's Repsol agrees to sell Gas Natural stake to CVC
Madrid: Spain’s Repsol (REP.MC) has agreed to sell its 20 percent stake in Gas Natural to CVC Capital Partners for 3.82 billion euros($4.69 billion), a move allowing the oil major to restart investment after years of debt reduction.
Repsol will sell the stake to Rioja Bidco Shareholdings, controlled by private equity firm CVC, for a price equivalent to around 19 euros per share, it said. Capital gains from the sale were around 400 million euros, it said.
The oil company had long been rumoured to be considering the sale of the non-strategic asset as part of a plan to keep its investment grade via debt reduction.
Europe’s fifth-largest refiner by market value is on track to cut its debt to below 7 billion euros by the end of 2017, down from 8.1 billion euros at the end of 2016 and around 12 billion euros a year earlier.
Repsol and Criteria Caixa, the holding company that owns Caixabank (CABK.MC), agreed a near 4-billion-euro deal to each sell a 10 percent stake in Gas Natural to Global Infrastructure Partners in September 2016.
Shares in Gas Natural were trading 0.3 percent higher at 18.34 euros at 8:43 GMT, whereas Repsol were 0.53 percent lower.