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Repsol Plans Brazil IPO Within 2 Months, Lawyer Says

Aug. 17 (Bloomberg) -- Repsol YPF SA, Spain’s largest oil company, expects to conduct the initial public offering of its Brazilian unit within two months, a lawyer working on the transaction said.

Brazil’s securities regulator must approve the offer and may take at least 20 days to analyze the sale, Ronald Herscovici, a lawyer at Souza, Cescon, Barrieu & Flesch Advogados, said in a telephone interview from Sao Paulo.

Repsol will analyze market conditions for the share sale once the documentation is approved in about one month, he said. The offer could happen before the capitalization of state-controlled Petroleo Brasileiro SA, which is expected in September, Herscovici said yesterday.

Repsol is seeking to raise $4 billion from the IPO to sell about 40 percent of its Brazil unit to fund oil exploration in the South American country, said two people familiar with the plan who declined to be quoted on July 30. Repsol has stakes in the Guara and Carioca fields near the Tupi field, the largest oil discovery in the Americas since Mexico’s Cantarell in 1976.

Both Repsol and Petrobras aim to tap investor interest in the so-called pre-salt fields, which run 800 kilometers (497 miles) along Brazil’s coast from Espirito Santo to Santa Catarina states.

Banco Santander SA, Bank of America Corp. and Itau Unibanco Holding SA are among the banks managing Repsol’s IPO, the unnamed sources also said in the July 30 interview.

Investment Plan

Repsol is investing in Brazil’s offshore Santos Basin and elsewhere to increase output, while seeking to reduce exposure to mature fields in Argentina. The company said April 29 it forecasts annual production growth of as much as 4 percent through 2014 as projects in Brazil and Peru come online. It plans to invest 28.5 billion euros ($36.7 billion) in that period.

Claudia Dantas, an outside spokeswoman for Repsol in Rio de Janeiro, declined to comment.

Repsol rose 15 cents, or 0.8 percent, to 18.13 euros in Madrid today, the biggest gain since Aug. 9.

To contact the reporter on this story: Felipe Frisch in Sao Paulo at ffrisch1@bloomberg.net Katia Cortes in Brasilia at at kcortes@bloomberg.net

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net

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