International Petroleum Investment Co. launched a public takeover bid for all of Cepsas share capital, including Totals 49 percent stake, in a 4 billion (U.S. $5.5 billion) deal. IPIC already has a 47 percent share in the Spanish refiner and lubricants marketer.
Other smaller shareholders account for about 4 percent, which will also be acquired by IPIC. The transaction is subject to government approvals.
IPIC will offer 28 (U.S. $38) per Cepsa share, and a dividend of .50 per share will go to existing shareholders. Total noted it has tendered its shares into the offer and will receive about 3.7 billion ($5.1 billion). In selling its shares in Cepsa, Total stated it is continuing to reduce its exposure to European refining.
Madrid, Spain-based Cepsa has a base oil plant in San Roque, near Gibralter, with 4,000 barrels per day of API Group I capacity.
Earlier this month, Cepsa announced plans to acquire Chevrons automotive and industrial lubricants, fuels and aviation businesses in Spain, including a lubricants blending plant in Valencia.
According to Parsippany, N.J.-based Kline and Co., Spains Repsol YPF is the leading finished lubricants supplier in Iberia, which includes Spain and Portugal. It is followed by Cepsa, BP, ExxonMobil, Total, Shell and Portugals Galp, which also reports a presence in Spain.
The Abu Dhabi government formed IPIC in 1984, giving it a mandate to invest in the energy sector globally. IPIC has stakes in 14 energy companies.
In 1988, IPIC acquired 10 percent of Cepsas shares. In September 2009, IPIC acquired the shares of Banco Santander and Union Fenosa, bringing its ownership of Cepsas shares to about 47 percent.