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Private equity firm EIG buying Repsol upstream unit stake at enterprise value of $19 bln

U.S.-based private equity firm EIG said Wednesday it agreed to pay $4.8 billion for a 25% stake in Repsol SA's upstream business. The deal values the upstream unit at $19 billion, which Repsol said exceeds analysts' consensus estimates. The agreement includes the possibility of listing a minority stake of the business in the U.S. starting in 2026, subject to favorable market conditions, Repsol said. Repsol CEO Josu Jon Imaz said the transaction "allows us to maintain the strategic direction of the upstream unit and, at the same time, to boost the transformation of the company and its multi-energy profile to achieve zero net emissions by 2050." EIG will be able to nominate two members to Repsol upstream's eight- member board, as part of the deal. U.S.-listed shares of Repsol are up 12.4% in 2022, compared to an 18% loss by the S&P 500 .

-Steve Gelsi


(END) Dow Jones Newswires

09-07-22 0741ET

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