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Mubadala to sell stake in Cepsa to Carlyle Group

Apr 08

 Mubadala to sell stake in Cepsa to Carlyle Group

Transaction expected to close by end of this year, Mubadala says

Mubadala Investment Company, the Abu Dhabi strategic investment firm, agreed to sell a significant minority interest in its fully-owned Spanish oil and gas firm Compañía Española de Petróleos (Cepsa) to US-based Carlyle Group.

Mubadala will remain the majority shareholder of Cepsa under the deal, while Carlyle Group will acquire between 30-40 per cent, it said in a statement to media on Tuesday.

The deal puts the entire enterprise value of Cepsa at $12 billion, according to Mubadala.

Equity for the investment will come from some of the US private equity firm's funds - Carlyle International Energy Partners I & II, Carlyle Partners VII, Carlyle Europe Partners V - as well as co-investors.

Cepsa is Europe’s biggest privately-owned oil and gas company. The transaction is subject to regulatory approvals and is expected to close by the end of 2019, Mubadala said.

The agreement marks the conclusion of a dual process through a public offering and private placement, led by Mubadala, to bring in new partners as part of its portfolio management strategy.

“Carlyle is an established, respected and experienced investor with significant assets under management in the global energy sector,' said Musabbeh Al Kaabi, chief executive of petroleum and petrochemicals at Mubadala.

“This represents an important milestone in Cepsa’s 90-year history. Mubadala has worked closely over the years with Cepsa’s management team to build a world-class fully integrated energy company.'