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Spain: Repsol Buys 10 Percent of Its Shares from Sacyr

December 21, 2011

Repsol Buys 10 Percent of Its Shares from Sacyr

Repsol has acquired 10% of its share capital after the Board of Directors unanimously approved this acquisition on December 18th.

The decision communicated by Sacyr’s lending banks to not refinance the loan granted to Sacyr for the acquisition of a 20% stake in Repsol, or the decision to partly refinance that loan conditional upon the sale of a 10% stake in Repsol held by Sacyr, has led to the acquisition of that stake by Repsol. This decision enhances shareholding stability, allowing the management team to focus all its efforts on the execution of the company’s strategic plan in the interest of all its shareholders.

Repsol has carried out the acquisition at 21.066 euros per share, which represents a 5% discount to the closing price on December 19th, (22.175) and a 22% discount to the average target price of research analysts. Repsol’s total investment is 2.572 billion euros.

As a consequence of this agreement, Sacyr will adjust its presence on Repsol’s Board of Directors. Furthermore, Sacyr has notified the termination of its Shareholders Agreement with Pemex of August 29th, 2011.

Luis Fernando del Rivero has resigned from Repsol’s Board of Directors.

Repsol’s capital structure allows the company to perform this transaction without compromising its sustained growth, with a very favourable outlook after completion of the Cartagena and Petronor projects, the confirmation of unconventional resources in Argentina and expected growth of the upstream business.

The Board of Directors has agreed to examine the potential sale of these shares in an orderly fashion to institutional and/or strategic investors that will contribute to the long-term objectives of Repsol. Additionally, part of the shares could be used for future shareholders’ remuneration.

Repsol begins a new phase with a more stable shareholding base which will allow management to focus its efforts on its organic growth project and value creation.

[mappress]
LNG World News Staff, December 21, 2011; Image: Repsol