Daily BriefsEnergy & Materials Sector

Daily Brief Energy/Materials: Repsol SA and more

In today’s briefing:

  • Repsol: Sale of 25% of E&P Division

Repsol: Sale of 25% of E&P Division

By Jesus Rodriguez Aguilar

  • The $19bn EV operation (vs. Repsol’s market cap of €19bn) allows Repsol to maintain the majority in a strategic area, crystallizes value (market assigns a higher valuation to the E&P division separately).
  • The implied valuation by the market is on average $3 billion lower. As usual with a minority stake sale, the market rarely values it at 100%. 
  • I estimate a moderate positive impact (the deal is similar to what was announced in July), value unlocking could theoretically reach €2.5-€3 per share, but I’d take a neutral stance.

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