Shares in Italian motorway group ASTM soar on buyout offer (updated)

GreenFirst Forest Products

22/02/2021 13:10

(Adds comments from sources)
    By Elisa Anzolin
    MILAN, Feb 22 (Reuters) - Shares in ASTM  ATMI.MI  jumped
27% on Monday after the Italian motorway group's top investor
made a $2 billion offer for the stock it does not already own,
believing it can overhaul the company more easily in private
hands.
    The approach follows similar moves this year in Italy at
coffee producer Zanetti and packaging equipment firm IMA as
investors take advantage of record low interest rates. 
    Nuova Argo Finanziaria (NAF), which holds a 42% stake in
ASTM, said at the weekend it would offer 25.60 euros a share
through a new vehicle to buy out minority investors for an
outlay of up to 1.7 billion euros ($2 billion).  urn:newsml:reuters.com:*:nL8N2KR07P
    The price is 28.8% above ASTM's closing price on Friday. 
    A drop in motorway traffic caused by the pandemic had driven
ASTM shares down to Friday's close of around 20 euros from 25
euros a year ago, just before COVID-19 contagion hit Italy.
    A Milan-based trader said NAF was looking to take advantage
of the depressed share price.
    NAF said it planned to revamp the business, adding that
would be easier if the company was not listed.
    Italy's Gavio family is the main investor in NAF with a
roughly 60% stake alongside the infrastructure arm of French
private equity firm Ardian.
    Ardian agreed to invest in ASTM just a few days before a
motorway bridge operated by toll-road firm Atlantia  ATL.MI 
collapsed in August 2018, killing 43 people.
    In response to the tragedy, Italy's government has tightened
oversight of the concession system and embarked on a legal
dispute with Atlantia, plunging the sector into uncertainty. 
    Two people close to the matter said ASTM was not fairly
valued on the market due to COVID-19 and the knock-on effects of
Atlantia's troubles. 
    NAF said it had secured financing for its offer and to
refinance part of ASTM's debt, with JPMorgan as the sole
underwriter. 
    JPMorgan Securities is sole financial adviser to NAF and
Milan-based law firm Chiomenti is its legal adviser.
    ($1 = 0.8269 euros)

 (Reporting by Elisa Anzolin. Writing by Valentina Za. Editing
by Kirsten Donovan and Mark Potter)
 ((valentina.za@thomsonreuters.com; +39 02 6612 9526;))