Monday, February 8, 2016

Ilva, Marcegaglia takes the field – BBC



Milan , February 8, 2016 – 16:30

New finance for 450 million. Ammunition that will serve to give greater flexibility to the financial structure of the Marcegaglia Group, engaged in an extensive reorganization, functional also to new shareholders in core of steel processing. A market where the group of Gazoldo degli Ippoliti collects 4 billion in revenues. The sum will also hay in the barn for the Ilva game that the team led by Emma and Antonio Marcegaglia, both managing directors, decided to try to play. Wednesday 10 the leaders of the Group will deliver in fact the expression of interest (for acquisition or rent) for the steel plant in Taranto and wheel will be able to access the “data room” to get the company information. Then they decide what position to take and with what allies take sides. Since Marcegaglia certainly can not play alone. The new loan, maturing in seven years and intended to rebalance the debt profile, was finalized last week by a group of nine banks, including the leader of Banca Imi, Unicredit, BPM, MPS, Banco Popolare, BNP Paribas and is was syndicated between BPER, Popolare di Vicenza, Sondrio and Banco do Brasil. They are long-term lines of a total exposure which also includes about 1.1 billion trade payables compared with a net worth of 828 million.

a large reorganization

This is the final piece of a broader reorganization started last year by Emma, ​​(also president of Eni) together with the brother Antonio, who is also president of the company. It is a reorganization that will also support a reorganization of family weights and will see the two steel contractors to command a direct grip on 50% upside. In summary, the new scheme has seen the steel activities go under the control of the new Marcegaglia steel, divided into three areas poles: Marcegaglia carbon steel (flat steel and tubes, 2.6 billion turnover on 4.2 Consolidated expected this’ year), Specialties (stainless steel and drawn bars weighs one billion), plates (heavy plates, worth 200 million). The foreign subsidiaries have been assigned to the three sub-holding, depending on the prevalence of the business. The goal? Consider whether to open the front of alliances for each activity in the future. The starting point is a world market that has seen the perimeter shrink, with growth of 1% in 2015 that could dwindle again this year to a + 0.7%, according to estimates last week from the World Steel Association . But unlike the producers of commodities such as ArcelorMittal and Nippon Steel, Mantua pole is a processor of raw materials, the largest in the world. The new challenge The focus is on special and carbon steels, those with high added value where there is also a major customer Fiat Chrysler automobiles in terms of automotive manufacturers, and Thyssenkrupp. With this new organizational entity, Marcegaglia is the appointed for Ilva, a crucial supplier to which she returned to ask important orders at the end of the year. The group of Gazoldo degli Ippoliti studied in the past action at Taranto, with a minority role, alongside ArcelorMittal, in a consortium of Italian origin. It is still topical the alliance? It will depend on a number of fronts, all open. The Indian group has initiated a recapitalization from $ 3 billion to compensate for losses in a battled field. It therefore seems less obvious sull’Ilva its participation in the project. A key role for the Lombard group may have any “call” of the government, with the Cassa Depositi e Prestiti, flanked by the advisor Citibank, which in late January indicated a willingness to a sull’Ilva project. But it is clear that the role of Marcegaglia can only be minority partners.

the sales

remains, however, the will of the steel group to seek mergers in the steel industry, through partnerships with industrial or financial. To be found in the Peninsula and outside the borders, even among groups like the Indians Tata and Jindal. As for the rest of the reorganization, the diversified businesses have found a new target under the Investment Marcegaglia. It is over 300 million in revenue from 35% of Gabetti, alternative energies and activities in tourism. In Puglia, the Marcegaglia Group is a joint venture with Enel in photovoltaics. All non-core investments classified and then be transferred or to combine with the larger reality. Because the principle is to create samples in each sector. In support of the reorganization, in the fall the group had launched a capital increase of 32 million.

8 February 2016 (edited February 8, 2016 | 16:59)

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