Likes it Business Square the hypothesis of purchasing that 40% of Saras in the hand of Moratti family, a tasty morsel for a refinery located in the middle of the Mediterranean and with a business model based on the total integration of its supply chain, particularly valuable in difficult times.
Vitol, the Swiss-Dutch commodity trading giant (the first in the world on oil) would be willing to pay the Milanese family 2,2 euros per share, according to MF, a price that incorporates a premium of over 35% on the value of the stock which closed on the stock exchange yesterday at 1,66 euros. The proposal values Saras at almost 2,1 billion (while at the closing on Thursday 8 February it capitalized 1,58 billion euros).
This morning the title of the company, leader in refining in Europe for almost 60 years, was suspended at the opening on Piazza Affari due to an excessive increase with a theoretical +12%. Then, once admitted to trading, the stock even reaches +14%, and then stabilizes at half session at +11%.
La Moratti family this morning he confirmed the rumors, albeit with reservations: “Although there are ongoing discussions with Vitol, press releases they do not correspond to reality” says the Moratti company. The note adds that the shareholders reserve the right to "evaluate any initiatives to protect their interests and those of Saras". According to MF the offer will expire on February 15th.
Equita: positive implications for the stock in the very short term
The offer "would value the company at approximately seven times the Ev/Ebitda multiple on our 2024 estimates" say Equita analysts who recall how the valuations of M&A operations in the refining sector resulted on average at an Ev/Ebitda multiple equal to to eight. “The news has positive implications for the stock in the very short term, as it makes it clear that there is an offer on the table. However, the family's membership still remains uncertain. In September 2018, the Moratti family had dropped from 50% to 40% of its share through ABB at a price of 2 euros per share", specify the SIM which raised the target price by 7% to 1,6 euros (rating hold confirmed ) based on the new estimates of the experts in view of the accounts, which do not include any M&A premium.
Who is Saras and why is it so good: the shareholders and the business
Angel Capital Management e Stella Holding which are the two safes of Gian Marco Moratti's heirs with 10% of Saras each in their portfolio, would be inclined to sell their shares. The other 20% is in the hands of Massimo Moratti knows, led byformer president of Inter which has 100% usufruct, after assigning 50% in bare ownership to each of the sons Angelomario and Giovanni. The second largest shareholder with 9,6% is Trafigura, another big player in commodity trading. Its share was reduced in early January after reaching 15% in November last year.
Saras is among the top 10 Italian industrial groups, third economic reality in the Oil & Gas sector, largest company in Sardinia. The heart of the Group is represented by the Sarroch industrial site, located in a strategic position on the south-western coast of Sardinia, south-west of Cagliari: a true reference model in terms of efficiency and environmental sustainability thanks to the know-how and the technological and human resources heritage gained in almost 60 years of activity, the company says. One of the largest refineries in the world is located on the site Mediterranean in terms of production capacity (around 15 million tonnes per year, equal to 300 thousand barrels per day) and one of the most advanced in terms of plant complexity (Nelson index equal to 11,7).
Saras' business model is based on total integration of your supply chain, from refinery operations to commercial activities. For this reason it established the subsidiary in 2016 Saras Trading, which from Geneva is dedicated to both the purchase of all raw materials for the refinery and the sale of finished products, as well as carrying out actual trading activities in one of the main global markets for the trading of petroleum products.
Directly and through its subsidiaries, Saras sells and distributes first and foremost oil products such as diesel, petrol, heating oil, liquefied petroleum gas (LPG), virgin naphtha and aviation fuel, mainly on the Italian and Spanish markets, but also in various other European and non-European countries. In 2022, approximately 3,66 million tonnes of petroleum products were sold in Italy and Spain in the retail and wholesale channels.
At the beginning of 2000, the refining activity was accompanied by the production and sale of electric energy, through the start-up of an IGCC (Combined Cycle Gasification) plant, one of the largest of its kind in the world. The Sarroch IGCC in fact has an installed power of 575MW and contributes approximately 45,9% of Sardinia's electricity needs. Also in Sardinia, the Group produces and sells electricity from renewables, through three wind farms managed by the subsidiaries Sardeolica Srl, Energia Alternativa Srl and Energia Verde Srl located in Sardinia, for a total installed capacity to date of 171 MW.
Vitol already interested in the Rovigo regasification terminal
With over 500 billion dollars in turnover, Vitol, already taking action in Italy to take over the Rovigo regasification terminal, is the leading oil trader in the world and owns refineries in Europe, the Middle East and Australia, as well as downstream activities and storage plants . Saras would be an outpost in the Mediterranean.
