Saras from Moratti to Vitol? The government says ok
The government has authorized the acquisition of Saras by Vitol, which will buy the Moratti family's share. In addition to the Sardinian refinery, the raw materials giant will also control the Rovigo regasifier. All the details
The Presidency of the Council of Ministers has authorized the acquisition of Saras, the oil refining company founded by Angelo Moratti, by Vitol, one of the main raw materials trading companies in the world.
THE BACKGROUND, IN BRIEF
Last February, Massimo Moratti's family (he is president and CEO) sold its controlling share of the company, equal to 35 percent, to Vitol: a deal worth around 1.7 billion euros.
Saras is based in Sardinia and is one of the most important oil refining companies in southern Europe. The Sarroch plant, near Cagliari, has a production capacity of 300,000 barrels per day and markets its fuel on the Mediterranean market.
THE GOVERNMENT DECISION
Today Vitol announced that the government has issued a decree relating to the exercise of golden power (i.e. that set of special powers which the executive can use to protect the national interest in strategic sectors) which contains "non-specific provisions obstacles to the completion of the operation” between Saras and the Swiss oil trading group. Consequently, "one of the conditions precedent for the completion of the transaction has been fulfilled".
The operation, therefore, proceeds: as the Radiocor agency explains , "obtaining the decree is one of the necessary regulatory authorizations on which the completion of the operation is conditional".
WHAT WILL VITOL DO WITH SARAS SHARES
Currently, Vitol owns 10.4 percent of Saras' share capital; once the operation is concluded and Moratti's share is acquired, he will have 45.4 percent, plus any additional shares acquired in the meantime.
Radiocor reports that the share of Saras that the Moratti family will sell to Vitol could rise from 35 to 40 percent if the Angel Capital Management holding company (also headed by Angelo Moratti) decides to also sell to Vitol the Saras shares that it will receive through the funded collar derivative contract, which represents 5 percent of Saras' share capital.
THE PUBLIC TAKEOVER AND THE REVOCATION OF THE LISTING
Vitol intends to launch a mandatory public takeover offer on the outstanding share capital of Saras: the price per share will be the same as the operation announced in February, i.e. 1.75 euros, which could however be adjusted downwards due to the possible distribution of dividends.
The initial public offering will lead to the delisting of Saras shares from listing and trading on the Euronext Milan market.
VITOL WILL ALSO HAVE THE ROVIGO REGASIFICATION PLANT
At the end of March Vitol (through the Dutch company VTTI) formed a consortium with the German IKAV group to purchase the majority share of Terminale GNL Adriatico : also known as Adriatic LNG, this is the company that manages the regasification terminal in Porto Viro, near Rovigo. Snam will remain a shareholder, increasing its stake to 30 percent from the current 7.3 percent.
The operation should be completed in the second half of 2024. At closing , the share capital of Adriatic LNG will therefore be held 70 percent by VTTI and 30 percent by Snam.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/energia/saras-vitol-autorizzazione-golden-power/ on Fri, 26 Apr 2024 12:54:20 +0000.