• 3 minutes Looming European Gas Crisis in Winter and North African Factor - a must read by Cyril Widdershoven
  • 7 minutes "Biden Targets Another US Pipeline For Shutdown After 'Begging' Saudis For More Oil" - Zero Hedge Monday Nov 8th
  • 12 minutes "UN-Backed Banker Alliance Announces “Green” Plan to Transform the Global Financial System" by Whitney Webb
  • 1 hour GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 day Building A $2 Billion Subsea Solar Power Cable From Chile To China
  • 15 hours Hunter Biden Helped China Gain Control of Cobalt Mines in Africa
  • 4 hours Microbes can provide sustainable hydrocarbons for the petrochemical industry
  • 26 mins CO2 Electrolysis to CO (Carbon Monoxide) and then to Graphite
  • 1 day NordStream2
  • 4 hours OPEC+ Expects Large Oil Glut In Early 2022
  • 1 hour Ukrainian Maidan after 8 years
  • 3 hours Forecasts for Natural Gas
  • 3 days "Gold Set To Soar As Inflation Fears Mount" by Alex Kimani
  • 1 day Big Bounce: Russian gas amid market tightness - new report by Oxford Institute for Energy Studies
Which Is The Best Shale Giant To Buy This Christmas?

Which Is The Best Shale Giant To Buy This Christmas?

Shale companies have become renowned…

OPEC Misses Its Oil Production Target Once Again

OPEC Misses Its Oil Production Target Once Again

OPEC raised its production in…

Repsol Sells 20% In Gas Natural For $4.2B

Spain’s energy major Repsol and investment company Criteria Caixa have agreed to sell a 20-percent stake in utility Gas Natural for a total of US$4.27 billion (3.8 bln euro). The buyer is U.S. fund Global Infrastructure Partners (GIP).

Each of the two sellers will divest from a 10-percent holding in the utility, with Repsol retaining 20 percent in Gas Natural, and Criteria Caixa keeping a 24-percent interest in it. For the oil company, the deal will bring in a capital gain of US$276 million (246 mln euro), which is welcome news for the debt-laden Repsol, which has a debt pile of US$13.14 (11.7 bln euro) to deal with amid the oil price slump and no prospects of price improvements anytime soon.

Criteria Caixa will book a gain of US$245 million (218 mln euro) and be capable of improving its core capital ratio by 1.65 percentage points, which should calm investors and the government after both Criteria and its bank Caixabank did worse than the average in the latest European bank stress tests.

Currently, Repsol, Criteria, and GIP are discussing corporate governance issues, as the 20-percent stake sale will effectively be the end of the joint control Repsol and Criteria have exercised over Gas Natural since 2000.

Talk about a possible divestment by Repsol and Criteria Caixa first emerged at the beginning of this month, with GIP named among three prospective suitors. At the time, a Bloomberg analyst noted a stake sale to the investment fund or any other one of the bidders would be positive news for Gas Natural as it would mean the buyer will retain the stake rather than “dump it straight onto the market”.

Gas Natural has a market value of around US$21 billion, according to Bloomberg, as of September 1. The company has been troubled by the persistently low gas prices, but earlier this year said it would make sure as much as 70 percent of its income went for dividend payments over the next four years.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News