Repsol, Caixa in Talks to Sell 20% of Gas Natural

Repsol and Spanish fund Criterio Caixa each confirmed September 1 they have been in talks with certain investors about the sale of a 20% stake in Spanish marketer Gas Natural – so 10% by each company. Both said contacts were ongoing and, once finalised, they would report back to the market.

Gas Natural’s principle shareholders are Criterio Caixa 34.4%, Repsol 30% and Algerian state gas and oil producer Sonatrach 4%. Criterio and Repsol effectively share joint control of the Spanish gas marketer, although this would no longer be the case if each divested 10% equity.

Criterio Caixa is the investment company that manages mutually-owned Catalan savings bank La Caixa’s industrial holdings.

Spanish business newspapers Cinco Dias and Expansion reported that Global Infrastructure Partners was tipped as the likeliest buyer. Kohlberg Kravis Partners had also expressed interest, reported Cinco Dias. The 20% package could be worth some €4bn, it was reported.

A Gas Natural customer service centre in Vigo in northwest Spain (Photo credit: Gas Natural)

Gas Natural shares ended the day 3% higher at €19.07/share, putting its current market capitalisation at some €19bn. In contrast Spain’s Ibex-35 index of leading companies was little changed.

International funds have invested in subsidiaries of Gas Natural before. In March 2015 Gas Natural brought in state Kuwait Investment Authority-owned Wren House as a 25% partner in ‘Global Power Generation’, its subsidiary for non-Iberian generation assets with 2.9 GW of installed capacity.

Mark Smedley