The shares were offloaded at €1.970 each through an accelerated bookbuilding process, a method designed to attract institutional investors. Following the sale, Eni’s ownership in Saipem is reduced to approximately 21.19%, representing 422.9 million shares. It’s worth noting that a significant portion of Eni’s remaining stake (roughly 249.5 million shares, or 12.5% of the total) is already covered by a pre-existing shareholder agreement with CDP Equity, an Italian state-owned investment firm.
This divestment comes with limitations for Eni. As part of the deal, they’ve agreed to a 180-day lock-up period. During this timeframe, Eni is restricted from selling any additional Saipem shares on the open market. However, there are exceptions subject to approval by the joint bookrunners involved in the sale, along with standard market practices.
The news arrives as Saipem is actively involved in several high-profile Liquefied Natural Gas (LNG) projects. The company’s expertise is in high demand, particularly in Qatar. In 2021, Saipem secured over $3 billion worth of contracts from QatarEnergy LNG (formerly Qatargas) for their North Field production sustainability offshore project. This was followed by another major win in 2022, with a $4.5 billion contract awarded by QatarEnergy for a separate project related to the North Field’s offshore compression complexes. These substantial contracts solidify Saipem’s position as a key player in the global LNG market, and their involvement in the massive North Field expansion project underscores Qatar’s ambitious plans to become the world’s leading LNG supplier.
Eni itself has also collaborated with Saipem in recent times. Last year, Saipem was awarded a contract for the conversion of a Floating Production Unit (FPU) as part of Eni’s Congo FLNG project. However, Eni’s decision to divest a portion of its stake suggests a potential shift in its strategy regarding Saipem. While they remain a significant shareholder, this move might indicate a focus on other areas within the energy sector, potentially including renewable energy sources or further exploration and production ventures.
By streamlining its portfolio and potentially reallocating resources, Eni is likely aiming to optimise its operations and capitalise on new opportunities within the evolving energy landscape. Saipem, on the other hand, appears to be solidifying its position as a leader in the LNG sector, particularly with its involvement in Qatar’s massive North Field expansion project. This strategic move by Eni paves the way for both companies to pursue their growth trajectories within the global energy market.