Abu Dhabi set to cash in Spanish Cepsa investment with expected $11.6bln IPO | ZAWYA MENA Edition

Abu Dhabi set to cash in Spanish Cepsa investment with expected $11.6bln IPO | ZAWYA MENA Edition:

Abu Dhabi is set to cash in significant gains as its Mubadala Investment pushes ahead with an initial public offering for Spanish oil firm Cepsa, in what could be the largest such deal in a decade.

The state-owned investor decided to proceed with an initial public offering (IPO)rather than a sale after potential bidders for the company were narrowed down to private equity firm Carlyle Group, people familiar with the matter said. Cepsa could announce the IPO as early as next week, pending final approval from the emirate’s rulers.

If the Spanish refiner achieves the valuation its owners anticipate, Abu Dhabi would see significant paper gains because its funds took full control of the company in 2011 in a deal valuing it at about EUR 7.5 billion.