Italy sells part of its stake in Eni to raise funds to reduce debt

The Italian government is selling part of its stake in oil and gas company Eni for 1.4 billion euros (34.6 billion Kč). It intends to use the proceeds to reduce debt. Bloomberg reported this today. Under the terms of the sale, the government has launched the sale of approximately 2.8 percent of the shares through an accelerated book-building process managed by a banking syndicate.

After the sale, the Italian Ministry of Economy and Finance will retain around two percent of Eni’s shares. The state-owned bank Cassa Depositi e Prestiti owns about 28 percent of the shares.

The government of Prime Minister Giorgia Meloni plans to sell state stakes in various companies worth around 20 billion euros by 2026. These include stakes in Monte dei Paschi di Siena bank and postal company Poste Italiane. It intends to use the proceeds to reduce Italy’s debt, which stood at approximately 137 percent of gross domestic product (GDP) at the end of last year. This is the second-highest level in the eurozone, after Greece.

Italy is offering 92 million shares at a price of 14.855 euros apiece. This represents a discount of around 1.7 percent to Tuesday’s closing share price.

Eni, whose market capitalization is around 49 billion euros, has expanded its activities in natural gas production and renewable energy in recent years. As part of its strategic plan, Eni is reorganizing and intends to spin off its biochemical company Novamont and create a division focused on carbon capture. It also plans to sell a stake in, or list on the stock exchange, its refining and fuels division Enilive.