Temasek, from Singapore, has acquired the treasury shares currently held by Repsol, amounting to 5.04% of the company’s stock. The agreement comprises the purchase of 64.7 million Repsol shares from the company’s treasury stock, at 16.01 euros per share, representing a 1.036 billion euro payment to Repsol. Together with existing share holdings in Repsol, Temasek now owns 6.3% of Repsol’s shares.
Temasek, whose portfolio value is in excess of 115 billion euros, is increasing its exposure to the European energy industry with this investment in Repsol.
“With an investor as significant and prestigious as Temasek, ” Repsol chairman Antonio Brufau said, “we regard this operation as proof of important international backing of our growth strategy.”
With this agreement, Repsol fulfills its objective of selling its treasury stock, acquired in December of 2011 from Sacyr Vallehermoso’s lenders. In January of 2012 Repsol sold 5% on the market, and today completes the sale of the treasury stock with the purchase by Temasek. Overall, this deal will have a 148 million euros negative impact on reserves.
The sale to Temasek is part of Repsol’s aim to consolidate its shareholder structure with the incorporation of investors of accredited international prestige to accompany Repsol in its long-term industrial development.
Incorporated in 1974, Temasek is an investment company based in Singapore, with 11 affiliates and offices in Asia and Latin America. Total shareholder return since inception in 1974 has been a healthy 17% compounded annually. The company has a corporate credit rating of AAA/Aaa by rating agencies Standard & Poor’s and Moody’s respectively.