MOSCOW (MRC) -- Eni is exploring the sale of its chemical division Versalis, three months after the unit returned to profit, said Hydrocarbonprocessing, citing people with knowledge of the matter.
The Italian oil company is working with Barclays on a potential sale of Versalis, which may fetch as much as 1 billion euros (USD1.1 billion), the people said, asking not to be identified as the process is private.
Several private-equity firms may be interested in bidding for the unit, they said. No final decision has been made and the valuation may depend on the structure of any deal, they said.
Representatives for Barclays and Eni declined to comment.
A sale of Versalis would fit with Eni’s current focus on oil and gas exploration, alongside a restructuring program to cut costs and upgrade the portfolio in areas such as refining and chemicals. Eni said in July that its refining, marketing and chemical operations turned a profit for the first time in eight years.
The chemical unit specifically reported an adjusted operating profit of 95 million euros in the first half of 2015, compared to a loss of 182 million euros in the same period the previous year.
Versalis is Italy’s largest chemical company by sales, according to Eni’s website, producing polymers used in industries from food packaging to car parts and toy manufacturing.
We also remind that, as MRC wrote before, Eni is going to invest EUR125 million in its Versalis plant in Mantua to under the Group 2014-2017 four-year strategic plan.
Eni is an Italian multinational oil and gas company headquartered in Rome. It has operations in in 79 countries, and is currently Italy's largest industrial company with a market capitalization of 68 billion euros (USD 90 billion), as of August 14, 2013. The Italian government owns a 30.3% golden share in the company, 3.93% held through the state Treasury and 26.37% held through the Cassa depositi e prestiti. Another 39.40% of the shares are held by BNP Paribas.
MRC