Eni and Snam join forces in Algeria and Tunisia. The two companies have signed an agreement that establishes the transfer from Eni to Snam of 49,9% of the shares held by the six-legged dog company in the companies that manage the two groups of international gas pipelines that connect Algeria to Italy. These are, in particular, the onshore gas pipelines which extend from the border between Algeria and Tunisia to the Tunisian coast (TTPC pipeline) and the offshore pipelines linking the Tunisian coast to Italy (TMPC pipeline). The operation, which will have to receive the green light from the competent authorities, is valid 385 million euro which Snam will finance "through its own resources", reads a joint note. Based on forecasts, the closing should arrive within the third quarter of 2022.
As established, Eni will contribute the equity investments in a NewCo of which it will hold 50,1%, while Snam will hold 49,9%.
"The operation allows for the synergistic enhancement of the respective skills of Eni and Snam 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", reads the note, which underlines how the operation is part of Eni's strategy to accelerate growth in the sectors relating to the energy transition and at the same time allows Snam to position itself on a strategic course for the security of natural gas supplies in Italy and for the prospects of development of the hydrogen value chain.
Satisfied Eni's number one, Claudio Descalzi, according to which "This transaction allows us to free up new resources to be used in our energy transition process, while maintaining the management of a strategic infrastructure with Snam for the security of supplies to the country".
Along the same lines, the CEO of Snam, Marco Alvera: “This agreement consolidates the central role of Snam in the security of Italy's supplies and in the transport of energy from the Mediterranean area. Thanks to the operation, Snam is projecting its infrastructure towards North Africa, which represents a key area for gas supplies to Italy and in the future for the development of hydrogen”.
The agreement also establishes an earn-in and earn-out mechanism to be calculated on the basis of the revenues that will be generated by the target companies which in 2020 have a net profit of approximately 90 million euros.
