Repsol sells piped gas business in Northern Spain and Extremadura for 136 mllion euros
- Repsol has transferred assets to EDP Group and Gas Extremadura, generating 76 million euros in capital gains.
- This transaction follows the transaction announced in September, when Repsol sold assets to Gas Natural Distribución and Redexis for 652 million euros.
- The transaction advances the divestment objectives established by Repsol in its 2016-2020 Strategic Plan, while at the same time creating value for the company.
Repsol sold its piped gas business in the north of Spain and the Extremadura region to EDP Group and Gas Extremadura, for a total of 136 million euros. The transactions will generate 76 million euros in capital gains after tax.
This transaction follows the sale completed by Repsol in September 2015 of piped gas assets to Gas Natural Distribución and Redexis for 652 million euros.
With these transactions completed, Repsol's divestment of this non-strategic business amounts to a total of 788 million euros, yielding accumulated capital gains of 431 million euros after tax.
Following these two sales, Repsol maintains a portfolio of piped gas assets with the capacity to supply 42,000 customers in the Community of Madrid, and will continue to serve these customers as it always has.
The sales agreements with EDP Group and Gas Extremadura are subject to regulatory approvals.
Active portfolio management is one of the strategic lines of action of Repsol's 2016-2020 Strategic Plan, whose focus is on creating value following the growth achieved in recent years, which concluded with the acquisition of Talisman Energy. The flexibility, strength, and adaptability of Repsol's business portfolio will allow the company to make divestments of 6.2 billion euros in non-strategic assets during the 2016-2020 period.
In addition to the partial divestment of the piped gas business announced in September, Repsol that month sold its 10% stake in logistics company CLH for 325 million euros. The company also reached an agreement in December to sell 13% of its stake in Eagle Ford (USA) to its partner Statoil. Furthermore, Repsol divested rights in a project in Alaska, and three offshore exploration blocks in Canada.
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