SNMRF - Eni to sell stake in Algeria-Italy gas pipelines in Euro385M deal

Eni (NYSE:E) agrees to sell a 49.9% stake in gas pipelines carrying natural gas from Algeria to Italy to Snam (OTCPK:SNMRF) for €385M ($436M), a move that could pave the way for hydrogen imports from Africa into Europe. Under the deal terms, "Eni will contribute its entire ownership interests in the two pipelines to a newly incorporated Italian company (NewCo) in which Eni will continue to hold a 50.1% stake, whereas the remaining 49.9% will be sold to Snam." The pipeline companies involved in the deal posted net income of ~€90M in 2020. Eni currently offers a 5.6% dividend yield, but "investors should be aware of the dramatic cyclicality of the energy sector," Aristofanis Papadatos writes in a recently posted analysis on Seeking Alpha.

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Eni to sell stake in Algeria-Italy gas pipelines in €385M deal