Abu Dhabi: The International Petroleum Investment Company (Ipic) said yesterday it intends to make a voluntary offer of about €4 billion (Dh19.86 billion) to buy the remaining shares of the Madrid-listed Compañía Española de Petróleos (Cepsa). Ipic currently owns 47.06 per cent of Cepsa.
In a statement, Ipic confirmed that it will offer €28 per share to all Cepsa shareholders.
"That price assumes that Cepsa will pay a dividend of €0.50 per share to its shareholders prior to the date on which the result of the offer is announced (and, if such dividend is not paid, Ipic will increase the offer price by €0.50 per share)," Ipic said.
"In the context of the takeover offer, the French oil and gas company Total has irrevocably agreed to sell its 48.83 per cent share in Cepsa to Ipic. The transaction is conditional on obtaining requisite competition law approvals," Ipic added.
"The deal is good for Total as it wants to pull out of downstream business in Europe. As regards Ipic, the deal will consolidate their presence in Europe, given that it already has a stake in Austria's OMV and a petrochemical joint venture with Borealis," Kate Dourian, Middle East Editor for Platts, a global energy information provider, told Gulf News.
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 sell-off will give Total the liquidity to invest in upstream projects.
Ipic is wholly-owned by the Abu Dhabi government and has a mandate to invest globally in energy and energy-related assets.
Integration: ATIC becomes subsidiary
The Advanced Technology Investment Company (Atic) has become a wholly owned subsidiary of Mubadala Development Company.
This will have no impact on the management, day-to-day operations or business plans of Atic or its Globalfoundries subsidiary, Mubadala said yesterday in a statement. Investment plans for Globalfoundries' facilities remain unchanged. Ebrahim Ajami will continue to lead Atic as its CEO. "With common executive leadership and the Government of Abu Dhabi as shareholder of both organisations, ATIC's integration into Mubadala will further drive the creation of innovative industries for the benefit of Abu Dhabi and the UAE," said Waleed Al Muhairi, COO of Mubadala.