The biggest Italian construction company, Salini Impreglio, has decided to continue the takeover of Astaldi SpA which faces financial problems.
Salini Impregilo will invest EUR 225 million in Astaldi, currently in bankruptcy, in exchange for a majority participation, part of a bigger financing plan of EUR 1.8 billion aimed to create a new national leader in Italy.
To ensure financing, Salini Impregilo will issue bonds worth EUR 600 million. Salini wants to lead the industrial consolidation process by using Astaldi’s takeover to create a business capable to compete with global giants in major road and railway infrastructure projects in the country and abroad.
Salini wants to access a loan to takeover Astaldi
Salini says the offer for Astaldi is conditioned by getting funds from Cassa Depositi e Prestiti (CDP) state bank and from a group of commercial banks, including Italian creditors Intesa Sanpaolo and UniCredit and French Group BNP Paribas by 1 August.
Astaldi is the second biggest constructions company in Italy. Last year, the financial evaluation agency S&P Global Ratings downgraded Astaldi from “CCC minus” to “D” (default). Last September, Astaldi applied to the Court of Rome for protection from its creditors “with reservation”, a mechanism used in Italy to allow a company to continue business. Astaldi has more than 10,500 employees and hopes to sell the third bridge over the Bosporus Strait in Istanbul to strengthen its liquidities and reduce its debt estimated at EUR 1.26 billion at the end of last year.