MOSCOW (MRC) -- While Repsol has not made a final decision on whether it will sell or not, the news suggests that its management now views the stake as having less strategic importance, following the sale of its liquefied natural gas businesses to Royal Dutch Shell in February, reported Oil&Gas.
Repsol declined to comment.
The possible offloading of Repsol’s Gas Natural stake comes as the network of cross shareholdings between Spain’s largest companies continues to unravel - driven primarily by the nationalisation of the country’s savings banks, which forced them to sell assets.
Repsol is under no financial pressure to sell its shares in Gas Natural, but its management has been considering whether freeing cash to invest more in upstream oil exploration - the focus of its growth plans - would be a more effective use of resources.
While the oil company has been addressing this issue in-house and has not yet signed a formal mandate with investment banks for a sale of its Gas Natural stake, people familiar with the process said it has been working with Citi and Deutsche Bank to assess its options, and the level of market interest in its stake.
Repsol has long considered the possibility of selling its stake in Gas Natural, which had often been criticised by analysts for lacking a clear industrial logic. But the expropriation of YPF delayed any decision about the holding, as Repsol’s management moved to stabilise the company through measures such as the sale of its LNG division earlier in the year.
As MRC wrote previously, in February 2013, Shell closed the purchase of a raft of LNG assets from Spain's Repsol with an announcement imminent. The Anglo-Dutch supermajor was finally set to snap up the LNG assets of Repsol in Peru and Trinidad & Tobago. Repsol was set to land around EUR 1.5 billion (USD1.96 billion) in cash from the deal, which also indicated Repsol LNG had gross debts of around EUR1 billion.
Repsol S.A. is an integrated Spanish oil and gas company with operations in 28 countries. The bulk of its assets are located in Spain. It is now the 15th largest petroleum refining company according to the Fortune Global 500 list.
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