Italian Treasury sells stake in Eni to boost public finances
Date
5/16/2024 3:59:32 AM
(MENAFN) The Italian Treasury has sold an estimated 2.8 percent stake in the Eni energy group for approximately 1.4 billion euros (USD1.52 billion) as part of a strategic effort to support the nation's struggling public finances. This transaction was carried out through an accelerated book-building process, with shares priced at 14.855 euros each, reflecting a 1.7 percent discount from Wednesday's closing price. According to a well-informed source, this discount is notably minimal compared to similar market deals.
Once the transaction is finalized, the Treasury's stake in Eni will decrease from 4.8 percent to 2 percent. Despite this reduction, the government will maintain significant control over Eni, as the state bank Casa Depositi e Prestiti holds an additional 28.5 percent stake in the group, ensuring that the total state-controlled share remains above 30 percent.
Italy's public debt, which is the second highest in the euro zone relative to its GDP, continues to draw intense scrutiny from rating agencies. Projections released by the Treasury Department in April indicate that public debt is expected to rise to 139.8 percent of GDP by 2026, up from 137.3 percent in 2023, before a slight decline to 139.6 percent in 2027. This sale of Eni shares is a crucial step in addressing the fiscal challenges and stabilizing Italy's economic outlook.
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