Repsol has stepped on the accelerator to be able to list its electricity and renewables subsidiary on the stock exchange.
The company has just processed the transformation of its subsidiary Repsol Generación Eléctrica into a public limited company (S.A.). This subsidiary concentrates the business that Repsol is developing in electrical energy, especially in electricity generation with renewable or low-carbon installations.
Repsol Generación Eléctrica was until now a Sociedad Limitada Unipersonal (S.L.U.). On 16 March, Repsol agreed to transform the subsidiary from an S.L.U. to an S.A. This was recorded in the Official Gazette of the Mercantile Registry (Borme). In this way, the capital of Repsol Generación Eléctrica is now represented by shares that can be freely transferred.
A similar process was carried out a few days ago by Acciona with its Renewables subsidiary. Repsol’s renewables subsidiary and Acciona’s renewables subsidiary are the most voluminous operations in the avalanche of IPO projects that have reached Spain in the clean energy sector.
Other groups such as Capital Energy, OPDEnergy, EiDF, Gransolar, Ecoener and Factorenergia are also taking positions to go public or are looking for other corporate moves to finance themselves, such as the incorporation of partners or even a merger with a Spac, the new investment vehicles that are causing a stir on the US stock market and which will not be long in coming to Europe.
In the case of Repsol Generación Eléctrica’s IPO, the oil company is analysing a dual track, which is common in this type of process. In addition to the IPO, it is also considering the possibility of incorporating one or more partners, preferably long-term financial partners, such as a pension fund. At the same time, Repsol is also considering spinning off its customer division (where it concentrates its service station business) and, in this case, the preferred option is to incorporate a partner or group of partners, always without losing the majority of the capital.
In the sale of the renewables subsidiary the advisor is JPMorgan and in the customer division it is Citi.