Eni, the Italian energy giant, announced on Wednesday the successful sale of a 10% stake in Saipem, an Italian oilfield services company, for a total of €393 million.
Accelerated Bookbuilding Process
Eni initiated an accelerated bookbuilding process on Tuesday evening, working with a syndicate of banks to offer Saipem shares to institutional investors.
Share Price and Stake Reduction
The sale was at a price of €1.97 per share, representing a 4.6% discount compared to Tuesday’s closing price. This transaction reduces Eni’s stake in Saipem from 31.19% to 21.19%.
Debt Reduction and Strategic Shift
Eni’s decision to sell a portion of its Saipem holding aligns with its strategy to reduce debt. The company experienced a 49% drop in net profit in the first quarter, largely due to declining gas prices. Eni’s updated strategic plan, unveiled in March, outlines a reduction in investments to €27 billion for the 2024-2027 period, a decrease of over 20% compared to last year’s plan.
Key Takeaways
- Eni sells 10% stake in Saipem: The Italian energy giant raises €393 million through an accelerated bookbuilding process.
- Share price and stake reduction: The sale was at €1.97 per share, reducing Eni’s stake in Saipem to 21.19%.
- Debt reduction and strategic shift: The move aligns with Eni’s plan to reduce debt and refocus its investments.
- Impact of gas prices: Eni’s first-quarter net profit was significantly impacted by declining gas prices.
- Revised investment plan: Eni’s updated strategic plan outlines reduced investments for the 2024-2027 period.