Sacyr begins its de-escalation in Repsol’s capital in the next few days with the expiration of the first derivatives with which it began to protect its participation from stock market fluctuations five years ago. Until the end of the year, the infrastructure group will gradually reduce its position in the oil company from the current 8% to around 3% through the execution of the financial products that it has contracted with Banco Santander and Société Générale.
Sacyr has taken the decision not to renew its derivatives at Repsol within the framework of the group’s structure simplification plan. The closing of the contracts will not imply any operation in the market, so it is not expected that it will directly affect the share price of the Spanish oil company.
This September the first derivatives maturities will arrive, in a trickle until the end of the year that involves a total of 75.4 million Repsol shares, equivalent to almost 5% of the capital. In total, Sacyr adds 122.7 million titles of the company chaired by Antonio Brufau (8%). Thus, at the end of 2021, the infrastructure firm will still retain 47.3 million shares, just over 3%, which are also linked to derivatives with maturities between 2022 and 2024.
With the withdrawal of Sacyr, Repsol loses the one that has been a reference shareholder since it entered the capital in 2006
With the withdrawal of Sacyr, Repsol loses the one that has been a reference shareholder since it entered the capital in 2006, when the company then chaired by Luis del Rivero took over 20% of the oil company. It paid 6,525 million euros to surpass La Caixa, which with more than 14% was until then the first investor in the oil company.
A commitment to energy businesses that were also undertaken in those years by construction competitors such as ACS with Iberdrola and Acciona with Endesa. In 2011, however, plagued by the debt related to the acquisition of Repsol’s securities – almost 5,000 million then – and after breaking the shareholding agreement signed with the Mexican Pemex, the construction company sold 10% of the capital to the oil company for 2,572 millions of euros. Subsequently, Sacyr’s stake was diluted by the collection of Repsol’s scrip dividend in cash – in recent years it has also increased it by opting for shares on occasion.
Improve your balance
In order to improve its financial situation and mitigate the risks associated with Repsol’s stock market performance, in September 2016, Sacyr closed a hedge agreement (prepaid forward) with Banco Santander on 20 million securities, setting the threshold at 10 , 7 euros per share -currently set at 12 euros- and maturing in September 2021. It obtained 239.3 million euros, of which the bulk was used to cut the loan linked to the purchase of the shares. In December of that year, it did the same with Société Génerale on 30 million shares, with a limit of 11.92 euros – today 12.6 euros – and with a term of five years. In exchange, he received 378.4 million euros.
And in April 2017, it signed a third hedge on the rest of its shares, 72.7 million, with a minimum level of 10.9 euros. In this case, it consisted of a prepaid put structure through which Sacyr obtained 795.2 million euros as financing. This derivative was modified in March 2020, remaining in force for 47.2 million securities, with an associated debt of 649.8 million euros and a threshold of 13.75 euros. The remaining 25.4 million shares were transferred to another new derivative, with an associated debt of 349.9 million euros, maturing in 2021. The company thus reduced its exposure to variations in the value of the share during the contracted term. , eliminating its exposure to a fall in the price below 13.75 euros per share and allowing to benefit from the revaluation, in the event that,
At the end of the first half of the year, Sacyr had an average book value for Repsol of 11.13 euros per share. Yesterday, the titles of the oil company closed at 9.36 euros.
Sacyr will also lose its current presence on the board of directors, where it occupies two seats
With the upcoming 8% to 3% reduction in Repsol, Sacyr will also lose its current presence on the board of directors, where it occupies two seats through Manrique, as vice president, and José Manuel Loureda, former president of the construction company.
Without La Caixa, which left permanently two years ago, and with Sacyr reduced to 3%, Repsol’s shareholding will be controlled by JP Morgan, with 6.855% of the capital, of which the majority corresponds to financial instruments, followed by BlackRock, with 5.194%, and Amundi (4.5%).
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