Partnership between Eni and Snam on gas pipelines from Algeria: the two groups have signed an agreement for the sale, by the six-legged dog to the group specialized in the integrated management of natural gas, of 49.9% of the investments in the companies they manage the two groups of international gas pipelines linking Algeria to Italy. The set price is 385 million. These are in particular the onshore gas pipelines that extend from the border between Algeria and Tunisia to the Tunisian coast (called Ttpc) and the offshore gas pipelines that connect the Tunisian coast to Italy (Tmpc).
The Italian newco
The transaction in detail provides for the contribution of the equity investments in an Italian newco, of which Eni will continue to hold 50.1%, with Snam which will finance the payment through its own means. The agreement “allows for the synergistic enhancement of the respective competences on a strategic route for the security of natural gas supplies in Italy, favoring potential development initiatives in the hydrogen value chain from North Africa”, explain the two groups. In particular, “the operation allows us to free up new resources to be used in our energy transition path, while maintaining with Snam the management of a strategic infrastructure for the security of supplies to the country”, comments the CEO of Eni. Claudio Descalzi.
North Africa hub for energy
According to Marco Alverà, CEO of Snam, “North Africa represents a key area for gas supplies to Italy and, in perspective, for the development of hydrogen. In the future, in fact, North Africa may also become a hub for the production of solar energy and green hydrogen ». The agreement also provides for an earn-in and earn-out mechanism based on the revenues of the “target companies”, which last year generated a net profit (100% Eni’s share) of approximately 90 million.
Parola all’Antitrust
The execution of the transaction is subject to various conditions precedent, including obtaining the necessary Antitrust and «golden power» authorizations. The agreement will also be examined by other regulatory authorities, with the green light expected also from the Tunisian state and from the shareholders and boards of directors of some companies at the heart of the agreement. In the transaction, which should be completed within the third quarter of next year, Eni was assisted by Rothschild while Snam by CC & Soci and Unicredit.