(Updates with closing share price in final paragraph.)
Aug. 29 (Bloomberg) -- Petroleos Mexicanos, the state-owned oil producer, agreed to increase its stake in Repsol YPF SA after an accord with Sacyr Vallehermoso SA to seek the revise the roles of top management in Spain’s largest oil company.
Mexico City-based Pemex will buy an additional 5 percent stake in Spain’s Repsol within a month, taking its holding to 9.8 percent, while Sacyr, a Spanish builder, will maintain a 20 percent stake, the companies said in a filing in Madrid today. After combining voting rights, the companies consider it “positive” to split the chairman and chief executive roles, both of which are now held by Antonio Brufau.
Pemex and Sacyr said they want to increase their board representation, while they don’t plan to gain control of the Madrid-based oil producer. They didn’t specify the amount of the increase. CaixaBank, the commercial lender owned by La Caixa, has a 13 percent stake in Repsol.
The companies said Repsol’s shares aren’t “appropriately valued” and aim to improve the efficiency of management. Repsol has fallen 22 percent in the past six months, valuing the company at 23 billion euros ($33.4 billion). Spain’s benchmark index, IBEX, has dropped the same amount during the period.
No one was available to comment at Repsol in Madrid.
Pemex expects a solid return from the investment and shares a common vision with Sacyr for the Spanish oil company, said a Pemex press official who declined to be identified, citing company policy.
Repsol’s American depositary receipts rose 5.7 percent, the most since March 17, to $27.92 in New York Stock Exchange composite trading. In Madrid trading, the company’s shares closed with a 3.7 percent gain before the announcement.
--With assistance from Carlos Manuel Rodriguez in Mexico City, Editors: Robin Saponar, Jessica Brice
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