ERG to sell remaining 20% stake in ISAB refinery

Italian energy group ERG SpA said its board of directors has given the green light to a put option on the remaining 20% stake held in the ISAB Refinery, located in Sicily, Italy, and valued at EUR400 million (USD 540 million), excluding stock, paving its exit from the oil refining business.
After the transaction is completed, Russia’s Lukoil, which currently holds 80% in the refinery, will gain full control over ISAB Srl. The closing of the deal is expected before the end of this year.
With this transaction ERG completes its exit from the refining business, proceeding with the strategy to invest in less volatile sectors, ERG CEO Luca Bettonte said. The transaction will allow the company to further consolidate its financial structure, he added. ERG, however, still keeps a significant industrial presence at the Priolo site via the ERG Power and ISAB Energy thermoelectric plants.
(October 9, 2013)