Repsol Agrees to Sell 20% Stake in Gas Natural for EUR3.82 Billion -- Update

Adds information on the prospective shareholder--Rioja Bidco

By Alberto Delclaux

Repsol SA (REP.MC) said Thursday that it has reached an agreement to sell its 20% stake in Gas Natural SDG SA (GAS.MC) to Rioja Bidco Shareholdings, controlled by CVC Capital Partners, for 3.82 billion euros ($4.7 billion), or EUR19 a share.

Repsol said that the consolidated capital gain from the transaction, which completes its divestment from Gas Natural, will amount to about EUR400 million.

The deal is subject to a shareholder's agreement between CVC and Gas Natural's other two big shareholders--CriteriaCaixa and Global Infrastructure Partners, or GIP, Repsol said. It is also subject to regulatory approvals, Repsol added. Under the terms of the deal, CVC will appoint three members to the board, replacing the Repsol-designated ones, Repsol said.

In a separate regulatory filing, Corporacion Financiera Alba, part of Grupo March, said that it had reached an agreement to indirectly invest EUR500 million into Rioja Bidco, representing 25.7% of the capital. Alba will subsequently hold an indirect 5.1% interest in Gas Natural.

The transaction follows a similar operation in 2016, when Repsol and CriteriaCaixa each sold a 10% stake to GIP at 19 euros a share.

Once this transaction is completed, Gas Natural's biggest shareholders will be CriteriaCaixa--with a 24% stake--and CVC and GIP, each with 20% interests.

Repsol had confirmed in January CVC's interest in its Gas Natural stake, responding to media speculation over a possible sale.

Write to Alberto Delclaux at [e-mail]

(END) Dow Jones Newswires

February 22, 2018 06:07 ET (11:07 GMT)

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