Repsol hit with lawsuit over Hecate Energy deal in US - report

Hecate Holdings LLC has hit Repsol SA (BME:REP) with a lawsuit to force it to complete the acquisition of the remaining 60% stake in US solar and storage developer Hecate Energy Group LLC, Spanish business daily newspaper El Economista reported on Tuesday.

According to the report, Hecate Energy's founders have accused Repsol of delaying and obstructing the purchase process, despite the original agreement stipulating a deadline of July 10.

Repsol finalised the acquisition a 40% stake in Hecate Energy on June 25, 2021, and had the option to buy the remaining shares it did not own three years after the deal’s close. The transaction allowed the Spanish multi-energy group to jump into the US renewables market, where it previously built a name for itself as an oil-and-gas business.

In July 2024, Repsol acknowledged that Hecate Holdings informed it of the exercise of the put option for the 60%.

“The parties are currently in discussions as to the next steps to be taken, as well as possible transaction alternatives,” Repsol said at the time.

However, the lawsuit alleges that Hecate Holdings asked Repsol to complete the purchase within the planned timeline, but the Spanish group made unreasonable demands and proposed an agreement to extend the option period, El Economista reported.

The two are also at odds over the valuation of Hecate Energy and are unable to bridge the valuation gap, the newspaper said.

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