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

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. 


Fear of food shortages after Beirut explosion hits grain reserves

Updated 06 August 2020

Fear of food shortages after Beirut explosion hits grain reserves

  • Beirut port silos had capacity for 120,000 tons

BEIRUT: Lebanon’s main grain silo at Beirut port was destroyed in a blast, leaving the nation with less than a month’s reserves of grain but enough flour to avoid a crisis, the economy minister said on Wednesday.

Raoul Nehme told Reuters a day after Tuesday’s devastating explosion that Lebanon needed reserves for at least three months to ensure food security and was looking at other storage areas.

The explosion was the most powerful ever to rip through Beirut, a city torn apart by civil war three decades ago. The economy was already in meltdown before the blast, slowing grain imports as the nation struggled to find hard currency for purchases.

“There is no bread or flour crisis,” the minister said. “We have enough inventory and boats on their way to cover the needs of Lebanon on the long term.”

He said grain reserves in Lebanon’s remaining silos stood at “a bit less than a month,” but said the destroyed silos had only held 15,000 tons of the grain at the time, much less than capacity which one official put at 120,000 tons.

Beirut’s port district was a mangled wreck, disabling the main entry point for imports to feed a nation of more than 6 million people.

Ahmed Tamer, the director of Tripoli port, Lebanon’s second biggest facility, said his port did not have grain storage but cargoes could be taken to warehouses 2 km (about one mile) away.

Alongside Tripoli, the ports of Saida, Selaata and Jiyeh were also equipped to handle grain, the economy minister said.

“We fear there will be a huge supply chain problem, unless there is an international consensus to save us,” said Hani Bohsali, head of the importers’ syndicate.

UN agencies are meeting on Wednesday to coordinate relief efforts for Beirut, Tamara Al-Rifai, a spokeswoman for the Palestinian refugee agency UNRWA, said from Amman. “People are extremely poor, it’s increasingly difficult for anyone to buy food, and the fact that Beirut is the largest port in Lebanon makes it a very bad situation,” she said.

“We are looking at Tripoli, but it is a much smaller port.”

Reserves of flour were sufficient to cover market needs for a month and a half and there were four ships carrying 28,000 tons of wheat heading to Lebanon, Ahmed Hattit, head of the wheat importers union, told Al-Akhbar newspaper.

Lebanon is trying to transfer immediately four vessels carrying 25,000 tons of flour to the port in Tripoli, one official told LBCI news channel.