Luxembourg-based Tenaris has signed a letter of intent to sell its 75% interest in Dalmine Energie, the company's Italian energy supply business, to E.ON Sales and Trading GmbH, an indirect subsidiary of E.ON AG.
Tenaris intends to sell its interest in Dalmine Energie to E.ON for approximately E39 million ($50 million), subject to adjustments. The purchase price reflects an enterprise valuation for Dalmine Energie of approximately E72 million ($92 million).
The transaction, which is subject to various approvals, is expected to close before the end of 2006.
Dalmine Energie began operations in 2000 following the partial deregulation of the Italian energy sector and initially supplied electricity to Tenaris’ Dalmine seamless pipe mill and other users in North Italy. Since then, it has grown rapidly and become a leading supplier of electric energy and natural gas to the Italian industrial and commercial market, with sales of approximately 3.0TWh of electricity and almost 1.1 billion cubic meters of natural gas.