Abu Dhabi to Purchase Outstanding Shares of Spain's Cepsa for $5.4 Billion - Bloomberg

A Cia. Espanola de Petroleos SA refinery and petro-chemical compound is illuminated at night, in San Roque, Spain. Photographer: Xabier Mikel Laburu/Bloomberg

Abu Dhabi’s state-owned petroleum holding company agreed to buy Total SA’s stake in oil refiner Cia. Espanola de Petroleos SA as part of a 3.97 billion- euro ($5.37 billion) offer to increase its stake in the Spanish company to 100 percent.

International Petroleum Investment Co. said it will pay 28 euros a share in cash, a 23 percent premium to yesterday’s closing price in Madrid, in a regulatory filing today to Spanish authorities. The company already has a 47 percent holding. The price assumes a 50 cent-a-share dividend.

“It shows that there is probably higher value to industrial partners than to equity holders,” said Lydia Rainforth, an analyst at Barclays Capital in London, who has a 22 euro per share price target on the stock. “There is a market for complex, strategic and coastal assets” in the refining business.