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. 


Dubai’s Jumeirah eyes Saudi mega-projects

Updated 17 min 6 sec ago

Dubai’s Jumeirah eyes Saudi mega-projects

  • NEOM and Red Sea scheme high on group’s ‘address’ list, CEO tells Arab News

DAVOS: Jumeirah, the leading hotels and leisure group in the Middle East, is planning big developments in Saudi Arabia’s “mega-projects,” CEO Jose Silva told Arab News on the sidelines of the World Economic Forum annual meeting in Davos.

“We must be in those locations, but I want to make sure we get the right ‘address.’ Jumeiah always wants to be among the top three sites on any location. If someone convinces me this is the right address, I will jump into it,” he said.

Silva made clear he was thinking primarily about the two big development on the Kingdom’s west coast — the NEOM metropolis and the Red Sea project further south along the coast. He is believed to be in contact with Saudi Arabian tourism authorities and potential partners in the Kingdom.

Silva also said that Jumeirah was keen to open hotels in Makkah and Madinah, which he called “preferred entry” points in the Kingdom. Work has already begun on two sites.

“It is very important for us to acquire the right assets and the right designers. Unless we control the architect, we will not do it. We have to be involved in the design process,” he said.

A big presence in Saudi Arabia would be part of the strategy of “going global” that Silva has advanced in his first two years a head of the UAE-based hotels, leisure and restaurants business, which is owned by the government
of Dubai.

Last year, Jumeirah bought the Capri Palace on the eponymous Italian island, and is also involved in a major expansion plan in Asia, with six new projects underway in China, Indonesia and Malaysia.

Silva is also overseeing a $100 million renovation of the Carlton hotel in London’s Belgravia. Expansion via luxury hotel properties in other European capitals is also being considered.

In Dubai, he has brought in world-class managers to restaurants in the group’s flagship properties in Madinat and Burj Al Arab, with a clutch of “celebrity chefs” in place in restaurants there. 

“We want to be the best brand for ‘destination dining’,” he said.