Friday, July 20th 2012 - 07:53 UTC

Repsol sells 540 million dollars in assets in Chile as part of divestment program

Spain’s Repsol said on Thursday it has reached an agreement with a consortium of Chilean investors, led by LarrainVial, for the sale of 100% of its subsidiary Repsol Butano Chile for approximately 540 million dollars.

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The sale will enable the Spanish corporation to improve its debt profile

Repsol Butano Chile holds a 45% stake of Lipigas, a company present in the Chilean LPG commercialization market, in addition to other financial assets.

The deal will generate a net capital gain of 170 million Euros and reduce the Repsol Goup’s debt by approximately 317 million Euros.

This transaction is part of the divestment of non-strategic assets included in Repsol’s 2012-2016 Strategic Plan, which aims for up 4.5 billion Euros of divestment for the period. These divestments, which already amount to 1.85 billion Euros, together with
other measures, aim to improve the financial structure of the group and to fund planned investments in exploration and production, the company’s growth engine.

The sale agreement for Repsol Butano Chile is the first divestment Repsol has carried out since the presentation of its new strategic plan. It is a new step in the divestment process of non-integrated downstream assets in Latin America, through which the company has raised nearly 1.75 billion dollars since 2007, including this operation which is expected to be completed on July 27 2012, subject to conditions common to this type of transactions.

Published in: Economy, Energy & Oil, Latin America.

Tags: Chile, Lipigas, Repsol, Repsol Butano Chile.

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1 British_Kirchnerist (#) Jul 23rd, 2012 - 12:31 pm Report abuse: I wonder if they want out because they're worried Chile might go left. But maybe its just as the article says, that they've been divesting since 2007. In which case is it any wonder that they wouldn't invest, the opposite of divestment, in Argentina. More support for lovely Cristina's nationalisation I think =)

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