Pemex reducing Repsol stake as Mexico prepares oil opening

6/3/2014

Pemex reducing Repsol stake as Mexico prepares oil opening

ADAM WILLIAMS

MADRID, Spain (Bloomberg) -- Petroleos Mexicanos is selling a 7.9% stake in Madrid-based Repsol SA, according to a Citigroup Inc. regulatory filing to the Spanish stock exchange.

Pemex pledges not to sell more stock for 60 days, according to terms obtained by Bloomberg. Citigroup and Deutsche Bank AG will conduct the sale, according to the filing. Pemex owns 9.2% of Repsol, according to data compiled by Bloomberg.

The shares are being offered at 20.1 euros to 20.865 euros each, valuing the stake at about 2.2 billion euros. Repsol shares have gained 18% in the past year.

The Mexican company is reducing its shareholding as lawmakers prepare regulations to open up the oil industry to foreign investment for the first time since 1938. Pemex was “very disappointed” in Repsol’s performance, CEO Emilio Lozoya said in an Oct. 31 interview. The stake “has returned zero” under the current administration, he told a congressional energy committee on Nov. 20.

Repsol spokesman Kristian Rix declined to comment.

Pemex’s press office in Mexico City didn’t have an immediate comment on the sale when contacted by Bloomberg.

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