Galp Rises Most in Almost 5 Months on Stake Price: Lisbon Mover
The stock climbed as much as 8 percent, or 87 cents, to 11.725 euros, the biggest jump since Nov. 30. Galp traded at 11.71 euros at 11:24 a.m. in the Portuguese capital, giving the oil company a market value of 9.7 billion euros ($13 billion).
Amorim Energia, a holding company controlled by Portuguese investor Americo Amorim, plans to buy a 5 percent stake in Galp from Eni of Italy for 14.25 euros a share. The transaction is expected to be completed in three to four weeks, a spokesman for Americo Amorim who asked not to be identified said in a telephone interview yesterday after the close of trading.
“This premium highlights that Amorim Energia values a minority stake in Galp at well above the current stock price, sending a positive message at a time when investors are very focused on the potential negative impact of the planned sale of between 18 percent and 20 percent by Eni (ENI) over the next five months,” Banco Espirito Santo SA (BES) analysts Filipe Rosa and Manuel Albuquerque said today in a research note. They have a “buy” rating on Galp shares.
Galp’s main shareholders on March 29 agreed on a proposal for Eni to sell a stake, paving the way for an exit from the Portuguese oil company. Eni, one of Galp’s two largest shareholders, had agreed to sell a 5 percent stake to Amorim Energia for an undisclosed price within 150 days. Eni and Amorim Energia, which is part-owned by Angolan oil company Sonangol EP, each hold 33 percent of Galp.
To contact the reporter on this story: Joao Lima in Lisbon at firstname.lastname@example.org