Piovan jumps double digits after Investindustrial move, moves towards delisting

(Il Sole 24 Ore Radiocor) - Piovan shot up on the Italian Stock Exchange Piovan, which, with a rise of more than 12%, touched a high of 13.8 euros per share, just below the 14 euros put up by Automation Systems, whose share capital is indirectly held by the Investindustrial VIII SCSp fund, as part of the takeover bid on the company's shares. The compulsory tender offer, aimed at delisting, will come upon the closing of the agreement signed by Automation Systems with Pentafin for the purchase of 58.35% of Piovan, equal to 61.17% of the capital net of 2.47 million treasury shares. Pentafin, Piovan's current main shareholder, will reinvest in Automation Systems' capital with a 25% stake.

"Over the past few years, the Piovan group has been able to strongly consolidate its position as one of the leading global players in the development and production of production process automation systems. Today a new chapter opens for the future of the Piovan group," said Nicola Piovan, executive chairman of the group, emphasising that "in a constantly evolving market context, the skills and resources of Investindustrial will be key factors in continuing and accelerating the growth path to the benefit of all stakeholders.

It is expected that the conditions precedent may be fulfilled by 15 October 2024 and that the closing of the sale may take place in the following weeks. Automation Systems has also subscribed a purchase agreement with 7-Industries Holding for the purchase of an additional 6.47% of Piovan's share capital, corresponding to 6.78% of Piovan's share capital net of treasury shares. Therefore, at the closing, the purchaser will hold a total stake of 64.82% of Piovan's share capital, corresponding to 67.96% net of treasury shares. Furthermore, Nicola Piovan and Filippo Zuppichin are expected to continue to hold the roles of executive chairman and managing director of the company respectively.

"This significant investment will allow a further consolidation of the company's leadership in the sector, as well as astrengthening of the company's international positioning through the penetration of new markets and application segments," said Andrea Bonomi, chairman of Investindustrial's Industrial Board, pointing out that the company "has already gained important experience both in the automation sector with the investment in Omnia Technologies, and in launching takeover bids in Italian companies in order to accompany them in ambitious long-term development projects, as it did with Guala Closures and La Doria in Italy".

Investindustrial used the law firm Chiomenti as legal advisor, the law firm Skadden Arps (for the US law aspects related to the transaction) and the law firm Paul Weiss (for the legal aspects related to the financial structure of the transaction). Pentafin used Mediobanca as financial advisor and Latham Watkins as legal advisor. 7-Industries by Clifford Chance as legal advisor.