CDP approves the exercise of the option to acquire Fintecna

Press release

CDP approves the exercise of the option to acquire Fintecna

Cassa Depositi e Presiti Spa (CDP) announces that the Board of Directors - meeting today under the chairmanship of Franco Bassanini - has authorized the exercise of its option to acquire 100% of Fintecna Spa from the Italian State, in accordance with Article 23 bis of Decree Law 95/2012.

Cassa Depositi e Presiti Spa (CDP) announces that the Board of Directors - meeting today under the chairmanship of Franco Bassanini - has authorized the exercise of its option to acquire 100% of Fintecna Spa from the Italian State, in accordance with Article 23 bis of Decree Law 95/2012.

The Board has also delegated the Chief Executive Officer, Giovanni Gorno Tempini, to exercise the option to purchase Fintecna from the Ministry for the Economy and Finance (MEF). Within 10 days of exercising the option, in accordance with applicable law, CDP must pay the provisional price of €1.6 billion, corresponding to 60% of the book equity of the company contingent on MEF’s transfer of its entire Fintecna stake

Within 60 days of exercising the option, an MEF decree will specify the transfer price (considered fair by CDP) on the basis of which the adjustment payment will be determined.

The decision taken by the board of directors takes into consideration the valuation given by financial advisors Rotschild–Unicredit, based on due diligence results conducted by accounting advisor Deloitte and legal advisor, Chiomenti Studio Legale.

The authorization to acquire Fintecna has already been granted by the Italian antitrust authority (Autorita’ Garante della Concorrenza del Mercato, or AGCM).

 

Business Rationale for the Acquisition

The Fintecna acquisition strengthens CDP’s ability to reach its objectives of supporting the Italian economy, as set out in its 2011-2013 business plan.

Fintecna is active in the acquisition, redevelopment, management and real estate value creation. The acquisition will create an entity with national relevance in the management and value enhancement of publically-owned real estate properties.

In particular, the CDP group will gain access to Fintecna’s real estate expertise, strengthening its skills in real estate development. This will create income from, or allow for the sale of, properties owned by local governments with significant and growing financial needs made more difficult by spending ceilings for public finances.

Furthermore, CDP will acquire control of Fincantieri (99.4% owned by Fintecna), therefore being able to support Italian growth by creating value out of its ownership of this national strategic asset. The Group has around 2.4 billion euros in revenue, employs 10,000 people. It is at the head of a vast industrial production chain, consisting of 5,000 suppliers active in many multiple production sectors, employing more than 30,000 people.

Fincantieri is one of the principle global players in the planning, construction and sale of civilian and military ships.

 

 

Rome, 24 October 2012

 

Cassa Depositi e Prestiti is a joint-stock company controlled by the Italian State, which manages postal savings, representing a significant proportion of total Italian savings, using these funds in accordance with its mission of sustaining the growth of the Italian economy. It is the leader in financing the investments of Italian public entities, promoting infrastructural development and is one of the main players in sustaining the Italian economy and enterprises. At the end of 2011 CDP shareholders’ equity totalled €14.5 billion (€15.6 billion in the first half of 2012.)

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