Eni divests 10% stake in Saipem for €393 million

Italian oil and gas company Eni has divested a 10% interest in oilfield services provider Saipem in a deal valued at €393 million (US$422.48 million).The sale occurred via an accelerated bookbuilding process on 11 June 2024, with the transaction set to conclude on 14 June.Following the transaction, Eni’s holding in Saipem has been reduced to approximately 21.19%, with 12.5% tied up in a shareholders’ agreement with CDP Equity, a subsidiary of Italian state lender CDP.

According to Reuters, the divestment aligns with Eni’s plans to manage debt and concentrate on primary business activities, targeting net proceeds of €8 billion by 2027.

A consortium of banks including Citigroup, Goldman Sachs International, Intesa Sanpaolo, Natixis and UniCredit facilitated the placement, targeting institutional investors.As part of the agreement with the joint bookrunners, Eni has committed to a 180 day lock-up period, during which it will not sell additional Saipem shares, subject to customary market exceptions and potential waivers by the joint bookrunners.

Saipem, which issued a profit warning in 2022, has since undergone restructuring including a capital increase, operational overhaul and management changes.Recently, the company secured three contracts worth $3.7 billion from a TotalEnergies subsidiary for the Kaminho project offshore Angola.

The contracts awarded by TotalEnergies EP Angola Block 20 involve the development of the Cameia and Golfinho oilfields, including the construction and operation of a floating production storage and offloading vessel and a comprehensive subsea infrastructure package.

Last month, Italy’s Treasury divested a 2.8% stake in Eni, raising nearly €1.4 billion.The sale lowered the Italian Government’s stake in the oil and gas company to 2% from 4.8%.