De Nora Industries in free fall at Piazza Affari after Snam sold a 5% stake in the company at a discount. By mid-morning, the stock drops 12,1%, falling to 6,5 euros, below the placement price. A minus sign also for Snam which lost 1,2% to 5,588 euros.
Snam sells 5% of De Nora
Monday, with markets closed, Asset Company 10, a company wholly owned by Snam, has completed the placement of approximately 10 million ordinary shares of Industrie De Nora at a price of 6,69 euros per share, for a total gross value of approximately 67 million euros, a figure that implies a 9,5% discount to De Nora's closing price yesterday, equal to 7,40 euros. Following the sale, Asset Company 10 holds approximately 33 million multiple-voting shares, or 16,6% of the capital of the De Nora family.
The company controlled by Snam has committed itself to the Sole Bookrunner to do not transfer or dispose of otherwise of their residual shareholding in the company for a period of 90 days from the settlement date of the sale, subject to customary exceptions and with the prior consent of the Sole Bookrunner. Goldman Sachs acted as Sole Bookrunner in the accelerated bookbuilding offering. Latham & Watkins advised the seller.
Analysts' comment
For Banca Akros (which has a neutral rating on the stock with a target price of 8,50 euros), the rapid coverage of the book "is a sign of good initial demand from institutional investors, probably supported by the 9,5% discount on the previous closing price".
Seen from Snam's point of view, the operation is consistent with the asset rotation program outlined in Snam's industrial plan "which allows – says Intermonte – to reallocate capital towards activities that further strengthen the gas infrastructure platform and support its integrated energy strategy.” The sale price, analysts (who have an outperform on Snam with a price target of 6,90 euros) point out, should be substantially in line with the carrying value (approximately 7 euros per share).
The Cernusco sul Naviglio gigafactory
It is also worth noting that Industrie De Nora has announced that the Ministry of Enterprise has revised the total amount of public funding granted for the development of the Italian gigafactory project, bringing it to 50,3 million euros, 100% coverage of the eligible costs of the project.
