Salini Impregilo S.p.A. has presented an offer, through a capital increase, to invest in Astaldi S.p.A. EUR 225 million for 65% of Asltadi’s shares. The transaction, which is expected to be closed in 2020, will be implemented through the proposed capital (EUR 225 million) in an essentially debt-free company with the potential support of long-term co-investors.
The offer will support Astaldi’s concordato preventivo proposal to be submitted to the Court of Rome with the objective to be admitted to the relative creditors’ procedure. Upon the Court’s approval, the proposal will be subject to the creditors’ review.
Under the proposal, the capital increase will be partly dedicated to the payment of secured and supersenior debt holders, and partly supporting the continuity plan, which would result in Salini Impregilo taking a controlling stake in Astaldi following the completion of the creditors’ procedure.
The proposal envisages an economic and financial plan to support the restructuring and continuity of Astaldi’s EPC activities, the separation of non-core assets (among which the concessions arm that includes the third Bosphorus bridge project) into a unit to be liquidated with the proceeds intended for the sole benefit of unsecured creditors, and the partial settlement of unsecured creditors both in the form of shares (which will benefit from continuity of the EPC business) and other participatory financial instruments (which will benefit from proceeds of the sale of non-core asset ).
The success of the transaction would guarantee the continuity of Astaldi’s ongoing projects, the preservation of Astaldi’s value chain, also contributing to the stabilisation of the sector and the national large infrastructure pipeline.
In September 2018, Astaldi announced that the delay in the sale process of the Third Bosporus Bridge, due to Turkey’s political and economic and financial events, has required the adjustment of the entire capital and financial strengthening Plan.
The transaction has the characteristics of a sector systemic solution with the aim of consolidating the Italian EPC infrastructure market, in order to guarantee its stability and development, the continuity of strategic infrastructure projects, the strengthening of the sector’s technical and industrial capabilities. The transaction represents an opportunity to create one of the leading global EPC operators with a combined EPC order book of EUR 33 billion and more than 45,000 employees.