Snam to sell stake in ADNOC gas pipelines to #AbuDhabi's Lunate | Reuters

Snam to sell stake in ADNOC gas pipelines to Abu Dhabi's Lunate | Reuters

Italy's gas grid operator Snam (SRG.MI), opens new tab will sell its minority stake indirectly held in ADNOC Gas Pipelines to Abu Dhabi-based investment fund Lunate, Snam said on Tuesday.

The deal is in line with the Italian group's long-term strategy to strengthen its role in Europe and reduce exposure to assets not located along Europe's major energy corridors.

"The sale of the stake in ADNOC Gas Pipelines is consistent with the recently presented strategic plan, which focuses on the development of a pan-European multi-molecule infrastructure," Snam's CEO Stefano Venier said in a statement.

Snam classified the stake in ADNOC Gas Pipelines in a cluster of assets, which also includes a minority shareholding in the British Interconnector, that could be divested.
ADNOC Gas Pipelines, a subsidiary of Abu Dhabi National Oil Company (ADNOC), has lease rights to 38 pipelines covering a total of 982 kilometres (610 miles) across the United Arab Emirates.

"We are pleased to strengthen our partnership with ADNOC through this investment and deliver on Lunate's mandate to offer investors access to high-quality assets," Lunate's Managing Partner Murtaza Hussain said.

Rothschild and Bank of America acted as financial advisers for Lunate and Snam, respectively.

Last year Lunate bought a 40% stake from private equity firms BlackRock (BLK.N), opens new tab and KKR (KKR.N), opens new tab in the entity that leases Abu Dhabi National Oil Company's (ADNOC) oil pipelines.

Snam acquired an indirect stake of almost 6% in ADNOC Gas Pipelines in 2020, along with other consortium partners, including international funds GIP, GIC, Brookfield Asset Management, Ontario Teachers' Pension Plan Board and NH Investment & Securities, through Galaxy Pipeline Assets HoldCo Limited.

The Italian group did not provide any figure for the financial value of the transaction.
"Snam currently holds a 5.88% indirect stake in ADNOC, and our model includes a value for Snam's stake of 200 million euros, while the book value is at 135 million euros," Italian investment bank Mediobanca said in a client note.

According to a source, the deal will result in a capital gain for Snam compared with the book value.

Gulf markets end mixed amid US tariff threats | Reuters

Gulf markets end mixed amid US tariff threats | Reuters

Stock markets in the Gulf closed mixed on Tuesday as investors assessed U.S. President Donald Trump's latest tariff threats, with the Saudi index rising on the back of property and telecom shares.

On Monday, Trump revealed plans to impose tariffs on imported computer chips and certain metal imports, among other products. This move is likely to affect industries from technology to manufacturing and may have far-reaching consequences for the global economy.

Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.4%, led by a 1.6% rise in the country's biggest lender Saudi National Bank (1180.SE), opens new tab.

Among other gainers, Jabal Omar Development Company (4250.SE), opens new tab, a real estate firm based out of Mecca, jumped 7.5%, rising for a third consecutive session.

The kingdom's Capital Market Authority (CMA) on Monday said foreign investors will be permitted to invest in Saudi-listed real estate companies operating in Mecca and Medina from Jan. 27.

Elsewhere, Saudi Telecom Company (7010.SE), opens new tab advanced 2.2%, after the firm said it won a contract worth 32.64 billion riyals ($8.70 billion) from a government entity to build, operate and provide telecommunications infrastructure services.

Dubai's main share index (.DFMGI), opens new tab fell 0.3%, hit by a 4% slide in Emaar Development (EMAARDEV.DU), opens new tab.

In Abu Dhabi, the index (.FTFADGI), opens new tab concluded flat.

Oil prices - a catalyst for the Gulf's financial markets - edged higher but remained near a two-week low, as weak economic data from China and rising temperatures elsewhere dampened demand prospects.

The Qatari benchmark (.QSI), opens new tab added 0.1%, helped by a 1.1% gain in petrochemical maker Industries Qatar (IQCD.QA), opens new tab and a 0.8% increase in Qatar International Islamic Bank (QIIB.QA), opens new tab ahead of its earnings.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab eased 0.3%, with Talaat Moustafa Holding (TMGH.CA), opens new tab declining 1.8%.