Repsol Sells Non-Strategic Assets In Chile For $540M
- Repsol has reached an agreement to sell Repsol Butano Chile to a consortium of Chilean investors led by LarrainVial for $540M.
- The deal will generate a net capital gain of $170M.
- This transaction is the first sale of non-strategic assets carried out by Repsol since the presentation of the company’s current strategic plan.
- Repsol’s 2012-2016 strategic plan foresees asset sales of up to 4.5B euros in the period, of which 1.85 B euros has already been completed, including the sale of Repsol Butano Chile.
- The company has obtained nearly $1.75B from the divestment of non-integrated downstream assets in Latin America since 2007, including this transaction.
Repsol has reached an agreement with a consortium of Chilean investors, led by LarrainVial, for the sale of 100% of its subsidiary Repsol Butano Chile for approximately $540M. Repsol Butano Chile holds a 45% stake of Lipigas, a company present in the Chilean LPG commercialization market, in addition to other financial assets.
The deal will generate a net capital gain of $170M and reduce the Repsol Goup’s debt by approximately $317M.
This transaction is part of the divestment of non-strategic assets included in Repsol’s 2012-2016 Strategic Plan which aims for up 4.5B euros of divestment for the period. These divestments, which already amount to 1.85B euros, together with other measures, aim to improve the financial structure of the group and to fund planned investments in exploration and production, the company's growth engine.
The sale agreement for Repsol Butano Chile is the first divestment Repsol has carried out since the presentation of its new strategic plan. It is a new step in the divestment process of non-integrated downstream assets in Latin America, through which the company has raised nearly 1.75B dollars since 2007, including this operation which is expected to be completed on July 27 2012, subject to conditions common to this type of transactions.