Repsol Says GN Buyer Drops Condition

The company buying Repsol's 20% stake in Spanish utility Gas Natural (GN) says it no longer requires a shareholders pact, prior to closing of its acquisition.

In statements issued March 23, both Repsol and GN said that Rioja Bidco Shareholdings – a venture controlled by private equity fund CVC – had said it is no longer insisting on its signature of a shareholders pact by March 22 with the two other largest GN shareholders Spanish investment fund Criteria Caixa and New York-based fund Global Infrastructure Partners as a pre-condition to buying the 20.072% GN stake. 

Repsol announced February 22 its agreement to sell the stake for €3.816bn ($4.7bn) to CVC-run Rioja Bidco, which set three conditions including the one relating to the pact. Repsol has already agreed to transfer its seats on the GN board to the CVC subsidiary, allaying most of its concerns. Once completed, Repsol will no longer be a shareholder in GN for the first time since 1989. GN remains Barcelona-based but last year moved its legal domicile to Madrid. Sonatrach is the fourth largest GN shareholder, with a stake of about 4%.