Spain's Repsol, Criteria explore 20% divestiture of Gas Natural Fenosa

(Reuters) Spanish oil firm Repsol and Criteria Caixa, an industrial holding company, are in talks with various investors to each sell around 10% of Spanish natural gas and utilities company Gas Natural Fenosa.

Gas Natural's combined-cycle plant in Sagunto, Spain

Two sources familiar with the matter said that US investment fund Global Infrastructure Partners (GIP) was in preliminary discussions with Repsol and Criteria to buy part of Gas Natural. Repsol and Criteria did not confirm to which investors they were talking.

A 20% stake of Gas Natural has a current market value of around €3.8 B ($4.2 B). GIP is already present in Spain through a 24% stake in the renewable energy group Saeta Yield.

"Repsol and Criteria are in contact with various investors," Repsol said in a filing to Spain's stock market regulator. "This analysis is in a preliminary phase, and no decision has yet been taken."

Criteria holds 34% of Gas Natural, while Repsol has a 30% share in the company. Criteria values its Gas Natural stake at €16.2/share on its books, while Repsol values its own stake at €15.8/share.

Repsol has sold off various assets in recent months, such as an offshore wind power business in Britain, as it looks to trim its debt.

Criteria and its Caixabank banking unit, meanwhile, are both under pressure to boost their solvency ratios in a more demanding global regulatory environment.

Bloomberg earlier reported the sale could value the Gas Natural stake at about €4 B, citing sources familiar with the matter.

Analysts at Banco Sabadell said this price tag would be positive for the gas company, though they added that this initial stake sell-down raised the possibility of further disposals, which could weigh on the shares.

(Additional reporting By Jesús Aguado; writing by Andrés González and Sarah White; editing by Adrian Croft and Mark Potter.)

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