Carlyle to buy up to $4.8bn stake in Cepsa from Abu Dhabi's Mubadala

Co-Chief Executive officer of The Carlyle Group, Kewsong Lee. (File photo/AFP)
Updated 09 April 2019
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Carlyle to buy up to $4.8bn stake in Cepsa from Abu Dhabi's Mubadala

MADRID: US buyout firm Carlyle Group has agreed to buy between 30 and 40 percent of Spanish energy company Cepsa from Abu Dhabi state investor Mubadala, valuing the stake at as much as $4.8 billion.
The transaction marks the successful end of a quest by Mubadala for a new partner in Cepsa after it pulled the Spanish group's stock market flotation last year, citing uncertainty in international capital markets.
Mubadala said on Monday the deal gave Cepsa a total enterprise value of $12 billion.
Reuters had reported in March that Carlyle, with $216 billion of assets under management as of December, was ahead of other contenders to buy a 30 percent stake in Spain's Cepsa for up to €3 billion ($3.4 billion).
Mubadala said the deal is expected to be completed by the end of 2019, pending regulatory approval, and the final stakes of both parties will be confirmed at that time.
“We now look forward to working in partnership with Carlyle, which has a significant track record and energy sector capabilities, and with Cepsa’s management to further enhance and grow the business,” said Musabbeh al Kaabi, Mubadala's chief executive, Petroleum & Petrochemicals.
Mubadala, with assets of $225 billion including a stake in Carlyle, will remain the majority shareholder of Cepsa.
Madrid-headquartered Cepsa is Europe's largest privately-owned oil and gas company. It reported a 15 percent fall in annual adjusted net profit to €754 million last year.
Rothschild was the sole financial advisor to Mubadala while HSBC and J.P. Morgan advised Carlyle.
Equity for the Cepsa investment will come from Carlyle International Energy Partners I and II, Carlyle Partners VII, and Carlyle Europe Partners V and co-investors. 


Yemen central bank is ready to supply banks with foreign currency

Updated 12 min 32 sec ago
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Yemen central bank is ready to supply banks with foreign currency

  • The central bank was divided to two branches after the war started
  • The central bank almost doubled its rate last year to stabilize the economy

DUBAI: Yemen’s central bank said it is ready to supply commercial and Islamic banks with foreign currency to finance imports of goods into the country, which has been pushed to the brink of famine by a four-year war, a Yemeni news agency reported.
The central bank has split into two rival head offices, reflecting the war between the Saudi-backed government and the Iran-aligned Houthi movement, creating hold-ups and payment problems that have exacerbated an urgent humanitarian crisis.
The branch in the southern port of Aden, the seat of the internationally recognized government, issued a circular saying it was ready to sell banks foreign currency at a rate of 506 rials to the US dollar or at market rates, “whichever is lower,” state news agency Saba reported late on Monday.
It cited the statement as saying this would cover letters of credit and financing guarantees for imports of goods not covered by a $2 billion grant from Saudi Arabia to help finance imports of basic goods and petroleum products.
The United Nations says about 80 percent of the 30 million population needs some form of humanitarian assistance and two-thirds of all districts in Yemen are in a “pre-famine” state.
The rival central bank headquartered in Sanaa, the capital now held by the Houthis who control most urban centers in Yemen, did not receive any funds from the Saudi loan. An official in the Sanaa branch said last year that traders must get letters of credit in Aden.
The conflict has devastated the economy of the poorest Arabian Peninsula nation. It has cut supply routes, reduced imports and caused severe inflation. The central bank nearly doubled its interest rate late last year to stabilize the currency.