Repsol sells stake in Brazil unit for $7.1B

[October 01, 2010]  MADRID (AP) -- Spanish energy company Repsol says it has agreed to sell for $7.1 billion (euro5.2 billion) a 40 percent stake in its Brazil subsidiary to China's Sinopec, creating one of Latin America's largest energy companies.

A Repsol statement says the resulting venture would be valued at $17.8 billion.

Repsol says its assets in Brazil are currently valued at $10.66 billion.

The capital injection will allow the unit, called Repsol Brasil, to fully develop all its current projects, which include some of the world's largest exploratory discoveries in recent years, the company said.

Repsol shares Friday in Madrid were up 6.9 percent at euro20.20 ($27.57).

[Associated Press]

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