Italian energy group Eni has executed a sale and purchase agreement, pursuant to which it will sell a 12.5% stake in Saipem, its subsidiary in charge of Engineering & Construction and Drilling businesses. Eni currently owns 42.93% in Saipem, in partnership with Dodge & Cox (12.1%) and the People's Bank of China (2.035%). Saipem will divest a 12.5% plus one share interest in the company to Fondo Strategico Italiano (FSI) for about €0.4bn and will support a proposed capital increase in Saipem, committing to subscribing pro-rata to the new share issue; the capital increase is expected by 30 April 2016. In addition, Saipem will achieve financial independence vis-à-vis the Eni Group by repaying its entire debt to Eni, estimated at €6.1bn. The Sale and Purchase Agreement will be terminated in the event that the capital increase is not settled by 31 May 2016 and if the outstanding debt of Saipem to Eni is not repaid in full by 30 June 2016.