Eni, HitecVision Sell 5% Stake in Norway’s Vaar Oil Firm

Eni, HitecVision Sell 5% Stake in Norway’s Vaar Oil Firm

Eni and Norway’s HitecVision have sold a 5% stake in Norwegian oil firm Vaar Energi (VAR.OL) for $530 million, the energy giant said on Thursday, Reuters reported.

Shares of Vaar fell 9% in morning trade after was Vaar listed in February, making it the largest oil exploration and production company to list globally in almost a decade.

Oslo-listed shares of the group have increased by about 50% since the initial public offering valued the group at 69.9 billion Norwegian crowns ($7.37 billion).

“The excellent trend in the share performance of Vaar Energi has unlocked the opportunity to place on the market additional shares thus increasing the liquidity on the stock and further consolidating and expanding the shareholder base of institutional investors,” Eni Chief Financial Officer Francesco Gattei said in a statement.

An accelerated bookbuilding process allowed Eni and investment firm HitecVision to sell a 1.2% and a 3.8% stake in Vaar Energi for 40.2 Norwegian crowns per share, respectively.

Vaar’s free float increased to 16.2% from 11.2% after the placement.

As a result of the placement, Eni owned 63.1% and HitecVision held 20.8% of Vaar.

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