Italian infrastructure giant Webuild (formerly Salini Impregilo) is acquiring the remaining stake in Astaldi, the second largest infrastructure group based in Italy.
The deal is part of the company’s "Progetto Italia" initiative to consolidate Italy’s infrastructure sector, which is beset by contractors’ financial difficulties.
A spokesperson told GCR: "It will create a bigger and stronger group ready to help Italy develop its infrastructure with European funds, and better compete abroad."
Webuild’s headcount rises to around 70,000 direct and indirect employees with the acquisition.
Webuild already owns about 66% of Astaldi, and is now acquiring the remaining 34%.
The deal entails splitting Astaldi into two companies, one carrying all the debt and assets that Webuild does not want, in a separation Webuild terms the "liquidation perimeter".
The unwanted company will be placed in a foundation to let the remaining creditors do what they can to recover the debt owed to them.
Webuild will issue new shares, offering 203 for every 1,000 Astaldi shares still held by investors.
In order to avoid diluting its existing shareholders with the issue of these new shares, Webuild will issue warrants to them that will allow the existing shareholders to keep their stakes at the same level.
Astaldi’s stock will be delisted from the Borsa Italiana (Milan’s stock exchange).
Image courtesy of Webuild