Sinopec acquires 30% stake in Galp's Brazilian subsidiary with a US$5.2 billion capital injection
Sinopec is to acquire a 30% stake in Galp Energia's Brazilian subsidiary, Petrogal Brasil. The transaction is a capital increase, rather than a 'clean' acquisition. The structure of the deal is analogous to Sinopec's 2010 purchase of a 40% stake in Repsol Brasil. In total, Sinopec will inject US$5.18 billion of cash. Accounting for balance sheet impacts, the effective acquisition cost is US$3.74 billion.We value a 30% stake in Galp's Brazilian portfolio at US$2.2 billion ...