Italy: Eni Sells Snam Stake
The Board of Directors of Eni today approved the sale of 30% less one share of the outstanding shares of Snam to Cassa Depositi e Prestiti (CDP), and the essential terms and conditions related to the transaction.
As already announced, Eni is hereby acting promptly in response to the Decree of the President of the Council of Ministers on 25 May 2012 (DPCM), which set out the guidelines for the sale of Eni’s stake in Snam. The DPCM has identified CDP as the appropriate entity to continue to provide stability to Snam’s shareholder base through the purchase of at least a 25.1% stake in the company.
Eni and CDP have reached a preliminary binding agreement based on a fixed price per Snam share of Euro 3.47 per share. A total consideration of Euro 3.517 billion is expected to be paid by CDP in three tranches: the first is to be paid at the closing of the transaction for a total amount of Euro 1.759 billion; the second is to be paid by 31 December 2012 for a total amount of Euro 879 million, and the third, for a total amount of Euro 879 million, is to be paid no later than 31 May 2013.
Starting from the date of the closing of the transaction until the date of payment, interest at the prevailing market rate will be accrued on the tranches which mature subsequent to the first tranche.
The closing of the transaction, which could occur on or after 15 October 2012, is expected to take place by the end of 2012 and is subject to certain conditions precedent, including, in particular, antitrust approval. Through this transaction, Eni will receive important financial resources that will fund the organic growth of its core E&P business.
LNG World News Staff, May 31, 2012