Chile's Abastible to purchase Repsol LPG subsidiaries

Chilean LPG distributor Abastible will purchase Repsol's LPG distribution units in Peru (Solgas) and Ecuador (Duragas).

The Solgas acquisition, when factoring in Solgas' net financial debt as of end-2015, is valued at US$264mn, Abastible parent company Copec said in a regulatory filing.

This figure will be adjusted on the payment date, based on criteria including net debt, working capital and exchange rates, Copec said, adding that the Duragas acquisition will cost US$33mn.

The transaction will make Abastible South America's third-largest LPG distributor, the filing said.

Solgas sells approximately 570,000t/y of LPG, with assets including an LPG import terminal with 10,600t of storage capacity and seven storage and bottling plants.

Duragas sells roughly 405,000t/y, and controls 37% of Ecuador's LPG market.

Abastible's 2015 profits grew 38.4% to 34.6bn Chilean pesos (US$52.5mn) due to improved margins in Chile and Colombia.