Italian oil and gas company Eni S.p.A. (E) said Tuesday that it has raised 1.409 billion euros or $1.82 billion from the sale of shares and convertible bonds in Portuguese energy company Galp Energia SGPS S.A.
Eni said it completed the placement of about 33.2 million shares in Galp, representing 4 percent of that company's outstanding share capital, in an accelerated bookbuilding offer to international institutional investors at 11.48 euros per share. The offer price represents a 6 percent discount to Galp's closing stock price on Monday of 12.22 euros per share.
Goss proceeds from the equity offering amounted to about 381 million euros. Following settlement of the equity offering, Eni's stake in Galp will decline to 24.34 percent from 28.34 percent.
In addition, as part of the transaction, Caixa Geral de Depositos S.A. or CGD has exercised its tag along right, thus selling its 1 percent stake in Galp, upon the same terms and condition as per Eni.
Eni and CGD have together placed in the market about 41.5 million shares of Galp, representing 5 percent of that company's outstanding share capital.
Concurrently with the equity offering, Eni completed the placement of about 1.028 billion euros of senior, unsecured bonds that are exchangeable into ordinary Galp shares. The bonds will have a maturity of 3 years and will pay a coupon of 0.25 per cent per annum.
The bonds will be exchangeable into Galp ordinary shares at an exchange price of about 15.50 euros per share, representing a 35 percent premium to the equity offering placing price of 11.48 euros per share.
Portuguese company Amorim Energia B.V holds a call option that gives it the right to buy up to 5 percent of Galp's share capital from Eni. Amorim Energia also holds a right of first refusal to purchase up to 5.34 percent if the call option is exercised, or up to 10.34 percent if the call option is not exercised.
In July, Eni said it completed the sale of a 5 percent stake in Galp to Amorim Energia at a price of 14.25 euros per share, thus reducing its overall stake in Galp to 28.34 percent.
E closed Tuesday's regular trading session at $46.04, down $0.43 or 0.93 percent on a volume of 354,082 shares.
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