MILAN, Feb 11 (Reuters) - Italy's Moratti family has agreed to sell 35% of oil refiner Saras to global commodity trader Vitol at 1.75 euros per share, valuing the entire group 1.7 billion euros, it said in a statement on Sunday.

Under certain conditions, Vitol could also buy an additional stake of up to 5% in the group, which is covered by a derivative contract signed by one of the members of the family.

Upon closing of the deal, the entire stake owned by the Moratti family in Saras will be transferred to Vitol, triggering a mandatory tender offer for the outstanding share capital of the group.

Vitol will launch the tender offer at the same price per share of 1.75 euros, which may be adjusted in case of dividend distribution occurring before the closing of the transaction.

This price represents a premium of around 10% to the share price before media speculations boosted the stock last week.

The goal of the mandatory takeover offer is to achieve a delisting from the Milan Stock Exchange, which may also be achieved through delisting merger should the required conditions be met, the Morattis said.

The Italian government will review the transaction under its golden power regulation aimed at shielding assets deemed of strategic importance.

Saras' most important asset is the Sarroch plant in Sardinia, which is the single biggest refinery in the Mediterranean with a capacity of 300,000 barrels per day.

The geographical location of the plant is particularly favourable for serving the Mediterranean market.

The Morattis' statement follows an announcement this weekend by the

Della Valle family

, which said it would team up with L Catterton to take Italian luxury group Tod's private while preserving a controlling stake in the company.

Saras and Tod's are set to join to a string of prominent companies which have abandoned the Milan stock exchange in recent years due to relocations to other markets or buyouts.

To reverse the trend, Italy's parliament plans to approve in the next few weeks a package of measures to make the country's capital markets more competitive.

However, representatives of investment funds and Italy's financial industry have all voiced concerns that some provisions in the bill that boost the influence of leading shareholders in listed companies could

backfire

and discourage foreign investment. (Reporting by Francesca Landini; Editing by Hugh Lawson and Giles Elgood)