Repsol sells 25% of its oil production business to the EIG fund – Business Insider Spain

Repsol has agreed to sell a 25% stake in its upstream business (exploration and production of hydrocarbons) to EIG, an American institutional investor, in an operation valued at 4,800 million dollars (about 4,835 million euros, at current exchange rates). The transaction, communicated this Wednesday 7 to the CNMV (National Securities Market Commission), consists of the payment of 3,400 million dollars (3,425 million euros) for the value of the shares and the assumption of 1,400 million dollars ( 1,410 million euros) of net debt. In this way, the operation, approved by Repsol’s board of directors, values ​​Repsol’s entire upstream business at 19,000 million dollars (19,135 million euros), above the consensus of analysts.Which Spanish companies continue to buy gas and oil from Russia?Repsol’s upstream division will be restructured under a single entity —which will maintain the staff, the management team and the business plan and existing companies—and EIG will acquire a 25% stake at the closing of the transaction, expected within the next 6 months. In addition, both companies value the possibility of going public with the business in the US as of 2026, “provided that provide the necessary market conditions,” the Spanish company clarifies in a statement, recalling that, as the majority shareholder, it will maintain control of it and continue to consolidate it within the Group’s accounts. Repsol will appoint half (4 of 8) of the members of the board of directors, including the president of the new company, with a quality vote, by the 2 that EIG will elect and another 2 independents. The operation, subject to the usual regulatory approvals, would reinforce Repsol’s leadership in the energy transition , it would advance the fulfillment of key objectives of the 2021-2025 Strategic Plan and value would emerge in Repsol’s upstream area, according to the energy multinational. “Our ambition is to lead the transition energy tion. This pioneering agreement allows us to maintain the strategic sense of the upstream unit and, at the same time, promote the transformation of the company and its multi-energy profile to achieve zero net emissions in 2050”, said Josu Jon Imaz, CEO of Repsol, according to the press release.For EIG, it is an “attractive opportunity to lead change” in its industry.“This business is well positioned to help meet the growing global demand for accessible, efficient and safe energy, and thus help to meet the double objective of decarbonization and reliability that the world is pursuing”, considers its president and CEO, Robert Blair Thomas.