Repsol is making progress with the preparation of its new strategic plan which it will unveil on June 7. It aims to earmark 2.5-3 billion euros for acquisitions, compared with the 3.82 billion which it will obtain from the sale of its stake in Gas Natural to CVC.
Criteria, La Caixa’s investment arm, and Abertis’ largest shareholder with 21.55%, will take up the offer launched by ACS, Hochtief and Atlantia and will sell the whole of its stake in the Spanish concessionaire.
Repsol has reached an agreement to sell its 20.072% stake in Gas Natural to Rioja Bidco Shareholdings, a company owned by funds advised by CVC. The sale price was 3.8 billion euros and the transaction will provide the oil company with approximately 400 million euros of capital gains.
Repsol’s sale of a 20% stake Gas Natural to CVC is near to being closed. The current value at market prices of 20% of Gas Natural is 3.708 billion euros. Furthermore, the stock has fallen nearly 6% in the year due to last markets turmoil. After its recent downward correction, Repsol’s stock price is back at an advantageous entry level.
Gas Natural’s main shareholders continue to analyse non-organic growth possibilities via acquisitions. The deal to which both Criteria Caixa (with 25% of Gas Natural) and Global Infrastructure Partner (with 20%) are dedicating more time is an eventual merger with EDP.
Sacyr announced yesterday that it will pay a scrip dividend, so that shareholders can choose between a cash payment of €0,052 per share or receive one new share for every 48 currently available.
Repsol is doing very well at the moment. And in fact, it has been selected as the best exploration and production company in 2017 by Platts Global Energy Awards. During H1’18 Repsol will present its new 5-year strategic plan. The most interesting part will be the so-called “third leg”, describing the firm’s vision of the future.
The difference between top managers’ salaries in Ibex-35 companies and the lowest salaries in these same firms is on average 207 times, which shows the salary gap in Spain is increasing.
Standard & Poor’s has announced an upward revision in its long-term credit rating for Repsol from BBB- to BBB. It has also improved its short-term rating from A-3 to A-2, with both ratings assigned a stable outlook. S&P had already improved its outlook for the Spanish oil major from “stable” to “positive” in July, leaving the door open for a ratings upgrade.
Repsol is the Spanish firm with the biggest exposure to Venezuela, which S&P has said is in selective default for failing to make $200 million in overdue coupon payments on its 2019 and 2024 global issues.