Temasek Holdings (Private) Limited and Sinopec Engineering (Group) Co., Ltd. (SEHK:2386) reportedly approached Repsol, S.A. (CATS:REP) over buying its €4.7 billion stake in Gas Natural S.A. ESP (BVC:GASNATURAL). Repsol is working with Deutsche Bank AG (DB:DBK and Citigroup, Inc. (NYSE:C) to find a buyer for the domestic gas distributor. Repsol has received separate expressions of interest from Temasek and Sinopec after the summer in 2013, people close to the process said.

Repsol's management, which is aiming to sell 25% of its 30% stake views both Temasek and Sinopec's interest favourably. People close to the deal said that no final decision had been made over a sale, Repsol had also received interest from other parties and cautioned that since Repsol is in no hurry to sell, it would come down to an attractive price being offered. Temasek and Repsol declined to comment.

Repsol has been exploring the possibility of selling its Gas Natural since February 2013.