Abu Dhabi’s IPIC to buy Spain’s Cepsa from Total for €3.97 billion
16 Feb 2011
Abu Dhabi state-owned petroleum holding company International Petroleum Investment Co (IPIC) today offered to buy the remaining half of Spanish oil refiner Compania Espanola de Petroleos SA (Cepsa) from French oil major Total for €3.97 billion ($5.37 billion).
IPIC, which holds 47.06-per cent stake in Cepsa will pay Total €28 a share in cash for its 49-per cent interest in Cepsa, a premium of 23 per cent to 15 January 2011 closing price. The price assumes a 50 cent-a-share dividend.
IPIC will offer to buy the remaining 3.96 per cent stake floated on the stock exchange in the Madrid Stock Exchange.
Cepsa is the second largest Spanish oil company with a refining capacity of 528,000 barrels per day, a network of approximately 1,750 service stations in Spain and Portugal and a hydrocarbons production of approximately 55,000 barrels per day. Cepsa also operates in Petrochemicals, Gas distribution and Power.
The selloff allows Total to pursue the implementation of its goal of reducing its exposure to European refining and give it liquidity to invest in upstream projects.
Total and IPIC also signed a memorandum of understanding in exploration and production whereby they intend to develop projects of common interest in the upstream oil and gas sectors.
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