In today’s briefing:
- Repsol: Sale of 25% of E&P Division
Repsol: Sale of 25% of E&P Division
- 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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