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SPAIN TO CUT REPSOL STAKE BELOW 50%

June 22, 1992

Spain's government plans to reduce its stake in semipublic petroleum company Repsol SA. The government decided to sell 80 billion pesetas ($800 million) worth of shares to the public, reducing its Repsol interest to 51-55%. Madrid plans a second offering in the fall, aimed at foreign investors, of another 5% of state holdings in Repsol. Although the state's interests in Repsol would drop below a majority, it still would have the largest single holding and thus retain effective control.

Spain's government plans to reduce its stake in semipublic petroleum company Repsol SA.

The government decided to sell 80 billion pesetas ($800 million) worth of shares to the public, reducing its Repsol interest to 51-55%. Madrid plans a second offering in the fall, aimed at foreign investors, of another 5% of state holdings in Repsol. Although the state's interests in Repsol would drop below a majority, it still would have the largest single holding and thus retain effective control.

Meantime, the government put a price tag of 17.3 billion pesetas ($173 million) on its sale of a 2.12% interest in Repsol to Mexico's Petroleos Mexicanos.

And Spain's cabinet has presented to parliament the government's proposed law for restructuring the petroleum sector, outlining procedures for full deregulation. It will put an end to the state's oil monopoly, established in 1927. State owned Campsa will continue to set oil and products prices until restructuring is complete.