Eni Concludes Sale of Snam Stake

Eni yesterday evening announced that it has approved the sale of a 30 per cent stake less one share in Snam to Italian state-run lender Cassa Depositi e Prestiti (CDP).

CDP will pay a total consideration of €3.517 billion for the stake, paid over three tranches over the course of one year. An initial €1.759 billion will be paid at the closing of the transaction. An additional €879 million will be paid by the 31st of December 2012. The final tranch of €879 million will be paid out by the 31st of May 2013.

CEO of Eni Paolo Scaroni said that the sale would allow the company to free up funds to invest in other oil and gas projects in the future.

"Eni will become one of the least indebted oil companies in the world, ready to face the list of capital expenditures in front of us," the Financial Times reports him as saying. "To do this we need a strong balance sheet."

Eni's remaining shares in Snam, of 23.5 per cent, will be sold to other as yet unidentified investors over the next 12 months, the company said.

CDP said in a spearate release that it would finance the acquisition of the stake in Snam through the sale of a  per cent stake it holds in Eni, worth about €2 billion.