Wedding between Saipem and Norwegian subsea7. From this marriage was born Saipem7, that is to say a European giant from 20 billion euros in revenues, an aggregate order book of 43 billion and a gross operating margin of over 2 billion. The new group will have its registered office in Milan and will be listed on Business Square but also to the Oslo Stock ExchangeIt will have 45 thousand employees, 9 thousand of which will be engineers.
Saipem and Subsea7 get married: capital split in half
For the operation, the current shareholders of Saipem and Subsea7 will have equal access to the capital of the new group. The transaction involves the transfer of 6,688 Saipem shares for each Subsea7 share held. Subsea7 shareholders will receive an extraordinary dividend of €450 million just prior to completion.
For Saipem7 are expected annual synergies of approximately 300 million starting from the third year, compared to an overall integration cost of approximately 270 million.
Saipem and Subsea7 get married: the role of Eni and Cdp
For the new Italian-Norwegian company the reference shareholders Eni e Cdp Equity have expressed their “strong support” by committing to vote in favor of the operation. In particular, Eni, Cdp Equity and Siem Industries, a partner of Subsea7, have signed a Memorandum of Understanding which includes the commitment to support the merger and the terms of a shareholders' agreement that will be effective upon completion. According to the agreements Saipem7 President to be appointed by Siem Industries, and the CEO from the Italian members, while the current CEO of Saipem Alessandro Puliti will be appointed administrator. The leaders of the two companies “share a belief that there is a solid rationale for creating a global leader in the energy services sector, particularly given the growing size of customer projects”.
The operation, according to the CEO of Eni, Claudio Descalzi will lead to the creation of the “global market leader in the Subsea and E&C Offshore sector, improving its competitive profile thanks to operational synergies, without negative employment repercussions, and will strengthen its capital structure”. “With this operation – he adds – we create a global leader of great industrial and technological value”.
“Together with Eni – says the CEO of Cdp, Dario Scannapieco – we worked in harmony and successfully to complete a large industrial operation”. In this way, Eni and Cdp Equity enhance their participation in Saipem, “also benefiting their shareholders, and will work with Siem Industries and the merging companies to ensure the successful completion of the transaction as announced.”
The operation was also attended by the Economy Minister Giancarlo Giorgetti, who stressed that the merger "represents a perfect example of how the public can valorize impressive industrial operations". "This is how - he underlines - a global giant in the energy engineering sector is built but with its headquarters in Italy, in Milan".
