Repsol struggles to tempt buyers to renewables unit: sources

Repsol struggles to tempt buyers to renewables unit: sources

Spain's Repsol is struggling to find buyers for a minority stake in its new renewable energy arm, with investors wary of the size and structure of a deal that would limit their say in key decisions, three sources familiar with the matter told Reuters.

Repsol is selling roughly 25% of its low-carbon business which operates wind, solar and hydro plants in Spain, the United States and Chile, and has asked for indicative bids next week, the sources said on condition of anonymity.

Some investors have lost interest due to Repsol's plans to list the company in the next few years, a route which Italian oil and gas firm Eni has chosen for its own low-carbon and client business later this year.

Investments in listed firms are subject to swings in market value, which discourages some funds, the sources said.

One source said Repsol's advising bank JPMorgan had called some potential investors as many as three times to try to make the case.

JPMorgan and Repsol declined to comment.

Repsol and larger peers BP, Total and Shell need to invest more in renewable generation and other technology to fulfil promises they have made to increasingly climate-conscious shareholders to slash the carbon emissions that contribute to planetary warming.

Repsol