* Eni bags 381 mln euros from sale of 4 pct in Galp
* Eni had hoped to place around 6 pct
* Places 1.028 bln eur of bonds exchangeable in Galp shares
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By Stephen Jewkes
MILAN, Nov 27 Italy's Eni raised 1.4
billion euros ($1.81 billion) from the sale of shares and
convertible bonds in Galp Energia on Tuesday as it
pushes on with plans to exit the Portuguese energy company.
In a complex operation, Eni sold a 4 percent stake in Galp
on the market for about 381 million euros while completing the
placement of some 1.028 billion euros of senior unsecured bonds
exchangeable into Galp shares.
The bonds, representing stock for about 8 percent of Galp,
will be exchangeable into Galp shares at a price of around 15.5
euros, the company said.
Eni earlier this year sold a 5 percent interest to reduce
its overall holding to just more than 28.34 percent and has
already flagged its intention to sell its Galp stake in phases.
The state-controlled group, which has on several occasions
said it does not want to remain invested in listed companies it
does not control, is selling non-core assets to siphon cash into
more profitable upstream oil and gas development.
On Monday, Eni said it wanted to sell a stake of about 6
percent in Galp, worth near 607 million euros at Monday's
closing market price of 12.2 euros.
The final placement price was 11.48 euros per share, a
discount of almost 6 percent to Monday's close.
"Galp has a small free float so getting away 4 percent, plus
another 1 percent from Caixa, was a good result," a trader said.
Portugal's Caixa Geral de Depositos exercised a tag-along
right it had to sell its 1 percent stake in Galsi.
Earlier this year, Eni Chief Executive Paolo Scaroni said he
expected the sale of the entire 33.34 percent holding in Galp to
fetch around 3.5 billion euros compared with the 900 million
euros the group had originally paid.
This year Eni has sold down its stake in domestic gas
transport operator Snam, which cut its debt by around
14.7 billion euros.
"We estimate that following these transactions, and assuming
Amorin takes up a call option on 5 percent ... and pre-emption
on (a further stake), Eni will have around 8 percent of Galp
left to place," Peter Hutton, an analyst at RBC Capital Markets,
Eni will be able to sell its remaining stake after a
voluntary 90-day lock-up period following Tuesday's placements.
Amorim, which holds about 38 percent of Galp, has a call
option on a 5 percent allotment in Galp held by Eni and the
right of first refusal on an additional 5.34 percent.
Amorim is led by Portuguese entrepreneur Americo Amorim with
participation by Angola's state oil company Sonangol.
Eni, which has committed to sell its Galp stake by the end
of 2013, said in October it had received a lot of interest for
Galp, but added the offers had not met its expectations.
($1 = 0.7733 euros)
(Additional reporting By Kylie MacLellan in London; Editing by
Helen Massy-Beresford and Maureen Bavdek)