The Italian treasury said on February 15th that it was in the process of selling off 5 percent of its share in energy giant Eni in a private placement.
The treasury confirmed reports that it had selected Credit Suisse First Boston and Banca IMI as joint bookrunners for the placement of the stake with existing institutional investors, silencing speculation that the sale could be delayed until later this year.
Eni Chairman Gian Maria Gros-Pietro said that: “I am satisfied, I hope the operation will be concluded as soon as possible.”
The treasury currently holds 35.34 percent of Eni ordinary shares and has already sold four tranches of shares in the world’s fifth-largest oil group.
The privatization of the oil and gas giant had begun in November 1995, and the government has raised about 40 trillion lire ($18.7 billion) from previous sales.
The new placement is of up to 425 million shares, comprising 370 million shares plus a 15 percent over allotment option, or 55 million shares. The offering is said to be worth about $3.1 billion Euros ($2.82 billion) and could bring the total amount raised to 46 trillion lire ($22 billion).
The government had forecast in June 2000 that revenues would reach 65 trillion lire ($30.4 billion) from privatizations and other sales by June 2001.
Some 25 trillion lire ($11.7 billion) of that amount is expected from privatizations, and the government intends to sell stakes in electricity giant Enel, Telecom Italia and several other state holdings to meet the target.
© 2001 Mena Report (www.menareport.com)
