ENI sells 100 % of Stogit and Italgas to Snam Rete Gas

ENI's Board of Directors approved the sale of 100 % of the equity of Italgas and Stoccaggi Gas Italia (Stogit) to Snam Rete Gas (50.03 % owned by ENI) for a consideration of EUR 3,070 mm and EUR 1,650 mm, respectively.
Total equity consideration is equal to EUR 4,720 mm which will be financed by Snam Rete Gas through:
(i) a rights issue for a maximum amount of EUR 3.5 bn (ENI has already committed to subscribe its relative share of the rights issue) and
(ii) new loans for EUR 1.3 bn.
The closing is expected to take place by July 2009.

As a consequence of the transaction, ENI will transfer to Snam Rete Gas its gas distribution and storage regulated activities in Italy, creating significant synergies.
The transaction is consistent with the unbundling target set by the Italian regulator and will allow ENI to maximize the value of both Italgas and Stogit. The two companies will benefit from higher visibility and achieve increased synergies as a part of Snam Rete Gas.

The transaction will create the leading Italian player and one of the major European operators in the regulated business, with a total RAB (Regulated Asset Base) of approximately EUR 20 bn. Furthermore, the company will manage gas transport and distribution networks of 31,000 km and 58,000 km respectively and have a storage capacity of 14 bn cm, including 5 bn cm of strategic reserves.
Italgas, 100 % owned by ENI, is a leading player in the Italian gas distribution sector. The company is a direct vendor of distribution services in approximately 1,300 municipalities. Together with its subsidiaries, the company provides distribution services to approximately 1,600 municipalities including Rome, Turin, Naples, Florence and Venice and transports 9 bn cm of gas through a distribution pipeline of over 58,000 km, managing a total of 7 mm installed gas meters.

Stogit, 100 % owned by ENI, is a leading European operator providing natural gas storage and modulation services through an integrated system -- managed by a single operative dispatching centre -- comprising 8 reservoirs, 280 wells, gas treatment and compression plants.
ENI has been assisted by financial advisors, Rothschild and Banca Imi, who provided ENI with an opinion on the fairness of the financial terms of the transaction.