Mubadala sells Cepsa stake to Carlyle after pulling IPO plan

Oil storage tanks sit at the water's edge at the Cia. Espanola de Petroleos (CEPSA) refinery in Algeciras, Spain, on Sunday, March 6, 2016.  Photographer: Luke MacGregor/Bloomberg
Oil storage tanks sit at the water's edge at the Cia. Espanola de Petroleos (CEPSA) refinery in Algeciras, Spain, on Sunday, March 6, 2016. Photographer: Luke MacGregor/Bloomberg

Carlyle Group LP plans to buy a stake valued at as much as $4.8 billion in Cepsa from Mubadala Investment Co., about six months after the Abu Dhabi sovereign fund shelved plans to list the Spanish oil refiner.

Carlyle will acquire 30 percent to 40 percent of Cepsa, valuing the company at $12 billion, according to a statement. Mubadala will remain the majority shareholder and the transaction is expected to be completed by the end of 2019.

Mubadala last year shelved plans for an initial public offering of a 25 percent stake in Spanish refiner as investors balked at the valuation amid a stock market rout.

Abu Dhabi, the holder of about 6 percent of the world’s oil reserves, has been selling stakes in some assets owned by its wealth funds and oil company. KKR & Co. and BlackRock Inc. in February agreed to invest $4 billion in Abu Dhabi’s oil pipelines.

Italy’s Eni SpA and Austrian oil and gas producer OMV AG agreed to pay about $5.8 billion for a stake in Adnoc’s refining unit, while Baker Hughes said in October it plans to buy a 5 percent stake in Adnoc’s drilling business.

More From Statement:

Cepsa is Europe’s largest privately-owned integrated oil & gas company, operating two refineries in Spain Cepsa is also an oil producer in Algeria and operates in Central and South America as well as South East Asia Equity for the investment will come from Carlyle International Energy Partners I & II, Carlyle Partners VII, Carlyle Europe Partners V and co-investors The transaction is subject to customary regulatory approvals Mubadala says the agreement marks the conclusion of a dual-track process through a public offering and private placement to bring in new partners as part of its portfolio management strategy Rothschild advised Mubadala on the deal, while HSBC Holdings and JPMorgan Chase worked with Carlyle

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