Is Iren a deal for Turin?
The buyback of 2.5% of Iren takes place at a cost of 2.53 euros per share. A figure higher than that of the sale, by the same 2.5%, decided by the mayor Chiara Appendino. The in-depth analysis of Repubblica
30 million euros.
This is as much as the game of actions between the Metropolitan City and the Municipality of Turin on the former municipal company of Turin costs.
The cost – calculated by the newspaper Repubblica – derives from decisions to sell and repurchase the investment: the Municipality of Turin, in order to raise cash, sold 2.5% of Iren in 2018, the same investment now repurchased by the Metropolitan City of Turin, that with the Municipality they will make a common front in the choices of the company. Let's go step by step.
THE PURCHASE
Let's start with the facts. On 12 April, the Metropolitan City of Turin, with the support of Intesa Sanpaolo, acquired 2.5% of Iren, the multi-utility that deals with electricity, gas, district heating, integrated water services, environmental and technological services. The shopping was carried out on the market by institutional investors.
THE SALE
That 2.5% actually represents the same share that the mayor Chiara Appendino, exponent of the 5 Star Movement, had decided to sell to make money in 2018.
THE RECEIPT OF THE SALE
At the time, Unicredit supported the Municipality of Turin in the sale: the sale took place at a price of 1.85 euros per share, at a 4.4% discount on the closing of the stock exchange. Thanks to the sale, the Municipality managed to bring about 60 million into the coffers of the Municipality. The choice, however, underlines Repubblica , weakened "the equity investment portfolio: the package of Iren shares in Turin drops from 16.3 to 13.80%, and the relative payment of dividends, in June 2019 and in 2020, will be reduced respectively 2.7 million and 3 million ".
THE REQUEST
This year the weakening of the metropolitan city has pushed back that 2.5%. But the repurchase price is much higher: € 2.53 per share, at a premium of 8.1% compared to the closing date. The cost of shopping for the tills of Metro Holding Torino srl, a vehicle of the former Province, weighs on the tills well 82.22 million.
THE REPUBLIC CALCULATIONS
The numbers speak for themselves: the Municipality of Turin collected 60 million in 2018, deprived itself of coupons for 5.7 million and now spends 82 million. “Total minus 27.7 million, which by adding an estimated 1% of commissions paid to Unicredit to sell and to Intesa Sanpaolo to buy, bring the difference to 29 million”, writes Repubblica.
THE MOVES OF GENOA
But Turin is not the only one. And also in Genoa he squandered public money. "If you want to" add up "other losses of public money, consider the 10 million spent by the Municipality of Genoa, a shareholder of Iren and even the subscriber of a syndicate pact with Turin, Reggio, Parma and dozens of minor administrations, to overpay a similar 2 , 5% of Iren bought with a blitz on the stock market on 18 December, just 20 days after the sale of the 2.5% in Turin which altered the balance in Iren, where until then the Municipalities of Turin and Genoa were paired above 16%. The Genoese overpaid: 2.16 euros per share, a 7.16% premium on stock market prices with an outlay of 70 million, 10 more than just collected from Turin ", says Repubblica, adding:" A phone call could have supply and demand: and being halfway there, Turin would have collected 5 million more, Genoa spent 5 million less. But the renewal of Iren's board of directors was looming, and Appendino feared a coup. That board of directors, headed by the “Genoese” Massimiliano Bianco but chaired by the “Turin” Renato Boero, will be renewed in a year ”.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/energia/iren-e-un-affare-per-torino/ on Thu, 15 Apr 2021 09:33:18 +0000.