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Business News/ News / Italy Sells €1.4 Billion Eni Stake in Bid to Cut Debt
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Italy Sells €1.4 Billion Eni Stake in Bid to Cut Debt

Italy is selling a €1.4 billion ($1.52 billion) stake in oil giant Eni SpA in a bid to reduce its mammoth debt.

Italy Sells €1.4 Billion Eni Stake in Bid to Cut DebtPremium
Italy Sells €1.4 Billion Eni Stake in Bid to Cut Debt

(Bloomberg) -- Italy is selling a €1.4 billion ($1.52 billion) stake in oil giant Eni SpA in a bid to reduce its mammoth debt.

Prime Minister Giorgia Meloni’s administration launched the placing of about 2.8% shares through an accelerated book building, according to terms of the offer obtained by Bloomberg and a government statement.

The government is working on a plan to sell around €20 billion in state-held stakes by 2026, which also include stakes in Banca Monte dei Paschi di Siena SpA and Poste Italiane SpA. The proceeds from the disposal will be used to reduce the country’s debt, which was about 137% of its output at the end of last year.

The Italian Treasury will keep about 2% of Eni after the sale, while state lender Cassa Depositi e Prestiti holds about 28%. 

Italy is offering 92 million shares at €14.855 each, with a 1.7% discount on Eni’s closing price. UBS, Goldman Sachs and Jefferies act as joint global coordinators for the placing.

The Italian energy company, which has a market capitalization of about €49 billion, has expanded its reach in natural gas production and renewable energy in recent years. Eni is reorganizing itself in a strategic plan, intending to split off its biochemical business Novamont and create a unit for carbon capture activities to seize momentum in the energy transition. It also plans to sell a stake or list its refining and fuel unit Enilive.

--With assistance from Greg Chang.

(Update with details on the sale from fourth paragraph)

More stories like this are available on bloomberg.com

©2024 Bloomberg L.P.

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Published: 16 May 2024, 12:15 AM IST
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