Galp Rises to 7-Month High After Eni Sells Stake: Lisbon MoverJoao Lima
Galp Energia SGPS SA rose to the highest in seven months after Eni SpA of Italy sold a 6.7 percent stake in Portugal’s biggest oil company.
The stock climbed 1.6 percent, or 20 euro cents, to 12.65 euros, the highest close since Oct. 30. That gives Lisbon-based Galp a market value of 10.5 billion euros ($13.6 billion).
Eni said in a statement today that it completed the sale of the stake to institutional investors at a price of 12.22 euros a share. The Italian company now holds 16.34 percent of Galp, of which 8 percent is underlying an exchangeable bond issued in November and 8.34 percent subject to certain rights that can be exercised by Amorim Energia BV, according to the statement.
“We consider this a positive operation as it can significantly diminish the risk of overhang on Galp’s shares and contribute to clarify its shareholder structure,” Carlos Jesus, an analyst at Caixa-Banco de Investimento SA with a buy rating on the stock, said today in a research note.
Galp’s main shareholders in March 2012 agreed on a proposal for Eni to sell a stake, paving the way for an exit from the Portuguese oil company. Amorim Energia, a holding company controlled by Portuguese investor Americo Amorim, in July completed the purchase of a 5 percent stake in Galp from Eni to increase its holding to 38 percent.