* Fenosa sells 5 percent under same terms
* IPIC becomes second largest shareholder after Total
* IPIC asks regulator to waive obligation for full bid
* Santander shares close up 5.06 pct
(updates with IPIC's request for full bid waiver, closing share
By Tracy Rucinski
MADRID, March 31 Spanish bank Santander (SAN.MC)
said on Tuesday it had agreed to sell its 32.5 percent of oil
company Cepsa CEP.MC to Abu Dhabi fund IPIC at 33 euros per
share or about 2.87 billion euros ($3.80 billion) in a widely
The price was below the 45 to 55 euros reportedly negotiated
last year when talks between Santander and IPIC over Spain's
second-largest oil company failed, but was in line with the
bank's announcement last month of talks in a 30 to 35 euro band.
Separately, Spanish power firm Union Fenosa UNF.MC said it
sold its 5 percent in Cepsa as part of Santander's agreement
with IPIC and under the same terms. Fenosa gave Santander a
mandate to bundle its holding with the bank's as both sought to
divest non-core assets.
IPIC will become Cepsa's second largest shareholder with
approximately 47 percent after France's Total (TOTF.PA)
following the deal, which is subject to regulatory approval and
In a late statement, IPIC said it has asked Spain's stock
market regulator CNMV to waive any obligation for the Abu Dhabi
fund to launch a full bid for Cepsa given that there is another
partner with a larger stake in the company.
Cepsa's shares closed up 0.76 percent at 31.74 euros, while
Santander rose 5.06 percent to 5.19 euros, compared with a 2.81
percent gain on Spain's Ibex-35 (.IBEX) leading share index.
The final price of the deal will be lower to reflect
possible dividend payments from Cepsa, Santander said, while
noting that the exclusion of Cepsa from its books will not have
any impact on its bottom line.
The bank will not book any capital gains from the deal.
"The holding in Cepsa was the last of a series of industrial
stakes Banco Santander has sold in recent years in order to focus
exclusively on its core retail and commercial banking
activities," Santander's chief executive Alfredo Saenz said in a
Fenosa -- which is currently being taken over by Spanish
utility Gas Natural (GAS.MC) -- said it will receive about 529
million euros cash from the sale and an estimated 257 million
euros in capital gains.
IPIC is wholly owned by the government of Abu Dhabi and has
a mandate to invest in the hydrocarbon sector outside of the
Cepsa is a petrochemical and refinery group with a large
service station network throughout Spain and Portugal.
(Additional reporting by Stanley Carvalho in Abu Dhab; Editing
by Jon Loades-Carter and Rupert Winchester)