Piazza Affari goes down by 2,1% in yet another forgettable start to the week. The collapse of Recordati stands out which, after opening with an 18% drop, at 10 am dropped by 14,3%, essentially aligning itself with the price of the public tender offer of 28 euros per share that the American CVC fund will launch following theagreement reached on 30 June for the transfer of the controlling stake in the company – corresponding to 51,8% – from the founding family to the US hedge fund.
On Friday 30 June, the shares had been suspended in the after hours before the official announcement of the agreement reached between the parties and were readmitted to trading in the morning. Two days ago the share price was 34 euros, today we have already reached 29.
We recall that, overall, CVC offered 3 billion euros to obtain the controlling share of the Fimei holding. A figure that corresponds precisely to 28 euros per share and implies a maxi-discount of 18%. On the basis of the price offered, Recordati's valuation (equity) drops from 6,9 to 5,8 billion euro.
Going into details, the transaction establishes the payment of 2,3 billion at the closing, which should take place by the end of the year. The other 750 million will instead be paid through long-term subordinated debt instruments (5-7 years), which means that the Recordati family will remain long-term creditors and involved in the group. Andrea Recordati, current CEO who will remain in place once the transfer is complete, he will reinvest in the new shareholding structure, while Alberto, Cristina and Hillary will not reinvest directly.
