US firm to buy multi-billion dollar stake in Spain’s Cepsa

The logo of Spanish oil company Cepsa is seen at a petrol station in Madrid, Spain, March 4, 2016. — Reuters pic
The logo of Spanish oil company Cepsa is seen at a petrol station in Madrid, Spain, March 4, 2016. — Reuters pic

DUBAI, April 8 — US-based investment firm Carlyle Group will buy a stake worth several billion dollars in Spanish oil giant Cepsa from Abu Dhabi sovereign wealth fund Mubadala, the companies said today.

The deal comes six months after Mubadala scrapped plans for a stock market listing for Cepsa, Europe’s largest privately owned oil and gas company which is fully owned by the UAE fund.

Carlyle will buy between 30 and 40 per cent of Cepsa, the companies said.

The financial terms were not disclosed, but the deal values Cepsa at US$12 billion (RM49.2 billion) which would make Carlyle’s stake worth up to US$4.8 billion.

The transaction is expected to be completed by the end of 2019.

The Abu Dhabi fund will remain the majority shareholder of Cepsa.

Mubadala, which has held a 100-per cent stake in the Spanish company since 2011, announced in September 2018 that it planned to sell a 25-per cent share to raise around US$2.3 billion.

A planned initial public offering (IPO) was scrapped the following month.

Cepsa is focused on oil and gas refining and distribution in Spain.

It is also present in oil and gas exploration and production both in Latin America and North Africa.

Based in Washington DC, the Carlyle Group is one of the world’s largest investment management groups, with US$178 billion in assets. — AFP

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