The sale of a stake in Italian oil contractor Saipem by main owner Eni to a state-owned investment fund does not constitute a change of control and so is exempt from rules triggering a mandatory bid, Italian watchdog Consob said on Nov. 11.
State-controlled Eni, which owns 43 percent of Saipem, reached a deal in October to sell 12.5 percent of its stake in the oil service company to Fondo Strategico Italiano (FSI).
At the same time Eni and FSI agreed to tie up stakes of 12.5 percent each, plus one share, in a shareholder pact controlling Saipem.
Under Italian law an investor holding more than 25 percent of companies like Saipem is required to launch a bid on the remaining shares providing there is no bigger shareholder.
However, if it can be shown there has not been a change of control at the company, Consob can grant an exemption.
In a statement on Nov. 11 the watchdog said the deal between Eni and FSI did not involve any actual change of control as far as minority shareholders were concerned.
Eni, which after the deal with FSI will also have an 18 percent Saipem stake outside the shareholder pact, is 30 percent controlled by the state.
FSI is fully owned by Cassa Depositi e Prestiti which in turn is 80 percent owned by the Italian Treasury.
Eni is selling down its stake in its subsidiary to be able to take more than 5 billion euros of Saipem debt off its own balance sheet.
Recommended Reading
Exxon Versus Chevron: The Fight for Hess’ 30% Guyana Interest
2024-03-04 - Chevron's plan to buy Hess Corp. and assume a 30% foothold in Guyana has been complicated by Exxon Mobil and CNOOC's claims that they have the right of first refusal for the interest.
Petrobras to Step Up Exploration with $7.5B in Capex, CEO Says
2024-03-26 - Petrobras CEO Jean Paul Prates said the company is considering exploration opportunities from the Equatorial margin of South America to West Africa.
The OGInterview: How do Woodside's Growth Projects Fit into its Portfolio?
2024-04-01 - Woodside Energy CEO Meg O'Neill discusses the company's current growth projects across the globe and the impact they will have on the company's future with Hart Energy's Pietro Pitts.
Deepwater Roundup 2024: Offshore Australasia, Surrounding Areas
2024-04-09 - Projects in Australia and Asia are progressing in part two of Hart Energy's 2024 Deepwater Roundup. Deepwater projects in Vietnam and Australia look to yield high reserves, while a project offshore Malaysia looks to will be developed by an solar panel powered FPSO.
Pitts: Heavyweight Battle Brewing Between US Supermajors in South America
2024-04-09 - Exxon Mobil took the first swing in defense of its right of first refusal for Hess' interest in Guyana's Stabroek Block, but Chevron isn't backing down.