Repsol YPF, Spain's largest oil company, said it will sell 26.2 million American depositary shares in its YPF business at $41 each in a deal that values 6.67 percent of the company's Argentine business at $1.07 billion. Repsol on March 14 had said it agreed to sell 3.83 percent of YPF for $639 million and announced the plan to sell more shares through an offering, according to Bloomberg News.
Madrid-based Repsol (REPYY) has been looking to reduce its exposure to Argentina amid declining production at aging fields and political problems associated with doing business in the South American country.
The Spanish company plans to use some of the cash it raises from the offering to expand its footprint in Brazil, South America's second-largest oil producer behind Venezuela. YPF produces and processes about 50% of Argentina's oil and controls about half the domestic fuel market, Bloomberg reported.
In addition to Brazil, Repsol is also active in Algeria, Bolivia and Peru. Argentina was the fifteenth-largest supplier of oil to the U.S. in December, according to the U.S. Energy Information Administration.