Repsol’s Butano Chile sale cuts group’s debt by $317 million

MADRID | Repsol on Thursday said it had reached an agreement with a consortium of Chilean investors, led by LarrainVial, for the sale of 100% of its subsidiary Repsol Butano Chile. The operation was valued at approximately $540 million. Repsol Butano Chile holds a 45% stake of Lipigas, a company present in the Chilean liquified petroleum gas commercialisation market in addition to other financial assets.

The deal will generate a net capital gain of $170 million and reduce the Repsol Group’s debt by approximately $317 million.

The Spanish corporation indicated that the transaction

“is part of the divestment of non-strategic assets included in Repsol’s 2012-2016 Strategic Plan, which aims for up to €4.5 billion of divestment for the four years.”

This divestment process already amounts to €1.85 billion. Coupled with other measures, Repsol aims to improve its financial structure and fund planned capital injections in exploration and production that will boost the company’s growth.

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 $1.75 billion since 2007, including this operation which is expected to be completed next July 27.

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