Spain-based energy company Repsol has agreed to sell part of its piped gas business to Gas Natural Distribución and Redexis Gas in a deal worth about €651.5m.
According to Repsol, the latest sale would generate an estimated after-tax capital gain of €367m.
Following these transactions, Repsol will continue to maintain a portfolio of piped gas assets with capacity to supply 141,535 regional customers.
The agreements are subject to regulatory approvals and are slated for completion in early 2016.
Repsol stated that following the partial disposal of its piped gas business, the company has surpassed the commitment made after the acquisition of Canada-based Talisman in May to divest $1bn of non- strategic assets.
The acquisition enabled Repsol to boost its production, and the quantity and quality of its assets.
On 25 September, Repsol signed an agreement to sell the 10% stake it held in CompañÃa LogÃstica de Hidrocarburos (CLH) to investment company Ardian for €325m in a bid to optimise its portfolio through selective divestments of non-strategic assets.
The sale of CLH generated a capital gain for Repsol of €300m.
Prior to selecting the winning bid, Repsol carried out an extensive process involving almost 150 potential investors, generating significant interest and competition.
Following the agreement, Ardian holds a 25% stake in CLH.
The integration of Talisman has also increased Repsol’s reserves by 55% to reach 2.2 billion barrels of oil equivalent.
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