Repsol SA has agreed to sell almost all the remaining Argentine
government bonds held as compensation for the nationalization its
Argentine unit as the Spanish oil and gas group builds up a war
chest for future acquisition.
Repsol said it is selling $2 billion worth of the securities to
a unit of J.P. Morgan Chase. This deal follows J.P. Morgan's
decision to buy $2.8 billion tranche of the bonds from Repsol last
week.
Following the two deals, Repsol's Argentine bonds portfolio is
worth just $117.4 million, the company said.
Repsol received the securities last week, following protracted
negotiations with the government in Buenos Aires. Argentina in 2012
seized and later nationalized Repsol's local unit, YPF SA, which is
the country's largest oil-and-gas company in terms of production.
Repsol challenged the move in international courts.
Repsol has previously said the proceeds of these will be added
to Repsol's growing cash pile which company executives say they
intend to use mostly for acquisitions.
Last week, Repsol also said it had sold nearly all of its 12%
remaining stake in YPF for $1.26 billion.
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