Eni Agrees To Sell Snam A 49.9% Stake In Two Gas Pipelines Between Algeria And Italy For EUR 385 Mln

(RTTNews) - Italian oil and gas company Eni (E) announced that it has agreed to sell Snam a 49.9% stake in its subsidiaries operating Tunisia borders to the Tunisia coast (TTPC) and Tunisian coast to Italy (TMPC) gas pipelines connecting Algeria to Italy for 385 million euros. The transaction is expected to be completed by the third quarter of 2022.

Pursuant to deal, Eni will contribute its entire ownership interests in the two pipelines to a newly incorporated Italian company (NewCo) in which Eni will continue to hold a 50.1% stake, whereas the remaining 49.9% will be sold to Snam. Snam will fund the payment of the purchase price with its own financial resources.

Eni and Snam will exercise joint control over the NewCo, on the basis of equal governance principles and both companies will therefore consolidate NewCo through the equity method.

Eni CEO Claudio Descalzi commented: "This transaction allows us to free up new resources to be used on our energy transition path, while at the same time maintaining the management of a strategic infrastructure with Snam to ensure the security of natural gas supply to the country".