Repsol Exits Chilean Gas Distributor

Repsol has sold its subsidiary Repsol Butano Chile, which held a 45% stake in Chilean gas distributor Lipigas, for about $540m, it says. The sale cuts Repsol’s debt by $317m and results in a net capital gain of $170m for the company. For the last few years, Repsol has been selling non-core assets in LatAm to focus on vertically integrated operations and free up cash for exploration and production. Also, the company is working to protect its investment grade status following a downgrade after YPF’s nationalization. A Repsol spokesperson declines to disclose advisors used in the transaction. It is part of a wider EUR4.5bn ($5.49bn) disposal program for 2012-2016, of which it has sold off EUR2bn so far.