Singapore´s sovereign wealth fund - Temasek - and Chinese petrochemical giant Sinopec have approached Spanish oil major Repsol about its stake in natural gas outfit Gas Natural, according to people close to the matter cited by the Financial Times.
The Spanish firm´s managememt is said to be looking to sell 25 percentage points of its 30% stake, advised by Deutsche Bank and Citigroup.
However, the company´s Asian suitors will have to see off the other parties who have also expressed their own interest in the stake. Amongst others Repsol is known to have had contact with EdF, GdF Suez, Algerian outfit Sonatrach, ENI and Mexican group Alfa.
The rationale behind the stake sale is to help fund Repsol´s medium-term strategy to raise its reserve replacement ratio to 120% and follows the sale of its liquefied natural gas unit to Royal Dutch Shell, in February. The latter means that it can no longer hope to muster synergies between it and Gas Natural.
However, Spanish daily Expansión wrote Monday that Repsol´s intentions had now changed somewhat. It is reported to now be mulling retaining Gas Natural´s electricity assets in Spain, but not those overseas, so as to then merge them with its own while at the same time hiving off the rest to a third party.
Source:LiveCharts
The Spanish firm´s managememt is said to be looking to sell 25 percentage points of its 30% stake, advised by Deutsche Bank and Citigroup.
However, the company´s Asian suitors will have to see off the other parties who have also expressed their own interest in the stake. Amongst others Repsol is known to have had contact with EdF, GdF Suez, Algerian outfit Sonatrach, ENI and Mexican group Alfa.
The rationale behind the stake sale is to help fund Repsol´s medium-term strategy to raise its reserve replacement ratio to 120% and follows the sale of its liquefied natural gas unit to Royal Dutch Shell, in February. The latter means that it can no longer hope to muster synergies between it and Gas Natural.
However, Spanish daily Expansión wrote Monday that Repsol´s intentions had now changed somewhat. It is reported to now be mulling retaining Gas Natural´s electricity assets in Spain, but not those overseas, so as to then merge them with its own while at the same time hiving off the rest to a third party.
Source:LiveCharts
