The Italian government plans to sell up to 4% of Eni SpA after the oil company completes a buyback plan, which would allow Roma to reduce its huge debt.
Prime Minister Giorgia Meloni’s government aims to make about 2 billion euros ($2.2 billion) in profits from the stock sale as part of a privatization drive, said people familiar with the matter, who asked not to be identified as the matter is confidential. There is. The proposal is still under consideration and subject to change.
The government aims to sell about 20 billion euros ($21.8 billion) of state holdings by 2026.
Eni shares reversed previous gains and fell as much as 1.2% to 14.47 euros in Milan trading.
The Ministry of Finance declined to comment. Italy’s Ministry of Finance currently owns 4.7% of Eni’s shares, while state-run financial institution Cassa Depositi e Prestiti holds 27.7%.
Finance Minister Giancarlo Giorgetti has repeatedly said that asset sales are being considered. He told the World Economic Forum in Davos on Wednesday that he had discussed the sale of shares with foreign funds during the meeting. He did not specify which company. As of now, the potential buyer has not been disclosed.
Italy faces continued low growth and high interest rates this year, hampering efforts to reduce debt, which amounts to around 140% of output. A planned share sale would help reduce debt, leaving the government with more room to use other funds to cut taxes and meet election promises.
Other companies whose state holdings could be sold include Post Italiane and railway company Ferrovi dello Stato, the people said.
Meanwhile, the government is proceeding with plans to sell a 25% stake in financial institution Banca Monte dei Paschi di Siena SpA and a 41% stake in ITA Airlines to Deutsche Lufthansa AG. The sale is at an advanced stage and is undergoing competitive review by the European Union. authorities.