Repsol SA, Spain’s largest oil producer, sold a 12% stake in Argentina’s YPF SA for $1.26billion.
The transaction marks a final break for Repsol with Argentina’s leading energy company two years after President Cristina Fernandez de Kirchner’s government seized 51% of the company. Repsol and Argentina agreed a $5bn compensation package earlier this year.
Today’s sale through Morgan Stanley generated a $622million gain, the company said in a statement. Repsol, which reports first-quarter earnings tomorrow, retains a 0.5% stake after the disposal.
Armed with cash from Argentina and today’s deal, Repsol plans to spend as much as $10bn acquiring assets, mainly in developed countries, executive chairman Antonio Brufau has said.