Italy’s energy company Eni to sell 7% in Portugal’s Galp Energia

Eni S.p.A. yesterday launched the sale of a 7-per cent stake in Portuguese energy group Galp Energia SGPS S.A., which may fetch the Italian oil and gas company around €670 million ($920 million).

The Rome-based company, which holds 16 per cent in Lisbon-based Galp, will sell 58,051,000 shares or around 7 per cent through an accelerated book-building process.

The joint book runners for the sale are Goldman Sachs and Mediobanca.

Eni said that Amorim Energia BV, a Portuguese company based in Amsterdam, which holds 33.34 per cent stake in Galp, has not exercised its right of first refusal under an agreement previously disclosed to the market.

Over the last few months Eni, Italy's biggest oil company, has sold around 0.34 per cent of Galp, and following the completion of the present sale, Eni will hold approximately 9 per cent of Galp, Portugal's only oil and gas operator.

Eni said that it will use proceeds from the sale for general corporate purposes.

Paolo Scaroni, CEO of Eni had earlier said that the company has no interest to be an investor in listed companies it does not control.

In 2012, it sold its 30-per cent stake in local natural-gas operator Snam to state-controlled lender Cassa Depositi e Prestiti for $4.36 billion. (See: Italy's Eni to sell 30 % in Snam to state lender for $4.36 bn)

The sale reduced Eni's debt from €26 billion to about €9 billion.