Eni Completes Snam Stake Sale
Italian explorer and producer Eni has announced today that it has completed the sale of its 30 per cent stake in Italian gas infrastructure operator Snam to Cassa Depositi e Prestiti (CDP).
The sale, which was initiated in March this year, sees CDP a 30 per cent stake, minus one share, in Snam for a total consideration of €3.517 billion (to be paid in three tranches). The sale is part of a drive to increase competition in the Italian gas market in response to the directives of the European Union. The directives aim to reduce monopolies from forming in the European energy market.
The first tranch of the total consideration, a tranch of €1.759 billion, has been paid today at the closing of the transaction. The next two tranches will be paid in the next year, with the next installment to be paid by the 31st of December 2012. The last tranch will be paid by the 31st of May 2013.
Besides the financial increase of €3.517 billion occurring from the completion of the sale, Eni said today that the company would benefit financially from credit reimbursed from Snam.
"Following the transaction, Eni will see an improvement in its net financial position equal to approximately €14.7 billion, deriving from the consideration recognized by CDP for the share stake and Snam’s reimbursement of intercompany credits," a company statement said today.
The sale is completed on the back of all necessary approvals from the regulatory authorities, including Italy's antitrust authority.