Consob has initiated administrative sanctioning proceedings against Saipem. This was announced by the company itself on Sunday 8 April, explaining that the Authority disputes the information prospectus and the supplement to the information prospectus relating to the maxi capital increase of 3,5 billion euro carried out at the beginning of 2016 in order to attempt to relaunch the company.
In detail, Consob has initiated an administrative sanctioning procedure, with regard to the documents made available to the public by the oil group on the occasion of the recapitalization, against the board since then in office (therefore also to the current CEO Stefano Cao, just confirmed in the last round of nominations) and of the CFO or responsible manager.
The offices of the National Commission for the Company and the Stock Exchange highlight "certain profiles regarding the incorrect drafting of the declaration on net working capital". Which would mean "theunsuitability of the offer documentation to allow for the formulation of a well-founded opinion on the equity and financial situation, on the economic results and on the prospects of the issuer by investors”.
In the press release released yesterday late in the evening by the company, it is specified that in the event that the disputed violations are ascertained at the end of the proceeding, Saipem would risk a "pecuniary administrative fine between 5 and 500 euros". The group and all the corporate representatives involved in the proceeding "in reaffirming their conviction regarding the absolute correctness of their actions, will formulate timely deductions in reply to the objections of the offices".
Consob's findings follow the notification of last March 2, disputed by the oil services group, in which the stock exchange control offices underline, among the various points, "the inconsistency of the assumptions and of the elements underlying the 2016-2019 strategic plan compared the evidence available to the administrative bodies".
In fact, according to the Stock Exchange Commission, it would be indicators of possible impairment of assets subsequently written down by Saipem in the report on the nine months of September 30, 2016, elements that would have already existed at the time of approval of the 2015 consolidated financial statements.
Finally, based on the Authority's objections, Saipem allegedly failed to represent the assumptions underlying the statement on net working capital, the availability of a "Eni scenario" on the updated price of oil and the existence of significant changes in the assumptions underlying the 2016-2019 strategic plan.
At Piazza Affari, the Saipem stock it currently yields 0,2% against a stock market performance of +0,7%.
