Eni sell Snam 49.9% stake in its subsidiaries operating Algeria to Italy gas pipelines

Italian energy company Eni said it will sell Snam a 49.9 percent stake in its subsidiaries operating  two groups of international gas pipelines connecting Algeria to Italy for a consideration of US$ 435.82 million (385 million euros). 

“In particular, the perimeter of the transaction includes the onshore gas pipelines running from the Algeria and Tunisia borders to the Tunisia coast (TTPC), and the offshore gas pipelines connecting the Tunisian coast to Italy (TMPC),” said the companies in a statement. 

Under an agreement between both companies,  Eni will hold a 50.1 percent stake, whereas the remaining 49.9 percent will be sold to Snam who will fund the payment of the purchase price with its own financial resources.

“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,” said Eni CEO Claudio Descalzi. “Gas will play a key role in the transition of energy systems to zero-emission models, and it is important to maintain the availability and diversification of supply routes for this resource,” he added.

The companies said that the agreement provides for an earn-in and earn-out mechanism to be calculated on the basis of the revenues that will be generated by the target companies. 

In 2020, the companies made  a net income of around 90 million euros; under the full ownership of Eni.