Temasek Holdings acquires 5% additional shares in Repsol

It now owns 6.3% of the Madrid-listed company.

Singapore investment company Temasek has purchased 5.04% of shares in Repsol.

Together with its existing share holdings in Repsol, Temasek now owns approximately 6.3% of Repsol’s shares.

The purchase of 64.7 million Repsol shares at 16.01 Euros per share amounts to 1.036 billion Euros (S$1.68 billion at today’s exchange rate).

Temasek, with a portfolio of S$198 billion as at 31 March 2012, is increasing its exposure to the energy sector with this investment in Repsol.

Repsol is a well-established Spanish integrated oil & gas company engaged in exploration, production, refining and marketing.

The Madrid-listed company has an attractive and diverse portfolio of growth assets in oil & gas production, development and exploration, around the world. It also has had strong performance in exploration and reserves replacement with a 204% reserve replacement ratio in 2012.

In addition, Repsol has the market leading refining and retail business in Spain. The company recently announced the sale of its LNG assets to Shell for US$6.7 billion, strengthening the company’s balance sheet and reducing net debt by half.

“The investment in Repsol deepens our exposure to the energy sector through a high quality growth-oriented company. The sector is a good proxy for the needs of transforming economies and growing middle income populations, both of which are part of Temasek’s investment themes.

We are pleased to have the opportunity to invest in Repsol, and will continue to look for good, long-term investments in the energy space,” said Tay Sulian, Managing Director, Investment, Temasek.

Repsol Chairman Antonio Brufau said; “We are very pleased to have amongst our shareholders an investor as significant and prestigious as Temasek with what we believe this represents in terms of recognition and support for the company’s management and growth strategy.”