Dec 12 - Divestment of Eni’s Interest in Galp

Source Press Release
Company ENI S.p.A.Amorim Energia B.V.Galp Energia 
Tags Deals, Corporate Deals, Refining & Marketing Activities, Pipelines/ tankers/ distribution, LNG & Gas Storage/Processing, Upstream Activities
Date December 31, 2012

(As per the ENIs Annual Report 2012) On July 20, 2012, as part of the agreements signed on March 29, 2012 by Eni and the other relevant shareholders of the Portuguese company Galp Energia, Amorim Energia and Caixa Geral de Depòsitos SA, Eni sold a 5% interest in Galp to Amorim Energia. The transaction covered 41.5 million shares at the price of €14.25 per share, for a total consideration of €582 million and a capital gain registered in profit of €288 million. Following the sale Eni ceased to be part of the existing shareholders’ agreement governing the investee and Eni’s residual interest in Galp Energia of 28.34% was stated as a financial instrument measured at fair value represented by the market price of Galp which resulted in gain of €865 million at the price current at the transaction date of €10.78 a share with future changes in fair value recognized in equity, except for the Galp shares which are underlying convertible bonds. As part of the March agreement, Eni has the right to sell up to 18% of Galp shares on the market (which could potentially increase by 2% if convertible bonds are issued) and a pre-emption right is granted to Amorim on the residual 10.34% shares of Galp owned by Eni through a combination of a call option on a 5% interest and a right of first refusal on the remaining 5.34%, or on the whole 10.34% in case Amorim does not exercise the call option.

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