Tisg opens its doors to new investors; its share price soars on the stock market (+10%)

The Italian Sea Group is opening up to new investors through a transaction that could lead to the sale of the entire company or part of its assets, or to a capital increase involving other shareholders. Currently, the company, which manufactures large luxury yachts, is controlled by its owner and founder, Giovanni Costantino. For months, TISG has been facing economic and financial difficulties following the identification of cost overruns on orders currently under construction, and has initiated a blank composition-with-creditors procedure. In recent weeks, however, several major groups have publicly expressed interest in certain assets or in the company as a whole. This development has driven shares in The Italian Sea Group up by more than 10 per cent on the Milan Stock Exchange.

Azimut Benetti is particularly interested in the La Spezia site; the Ferretti Group has indicated that it is considering the proposal and has begun to examine the plans; a consortium, set up specifically for this purpose and named Polo Nautico di Carrara, comprising Riccardo Cima, along with several suppliers, and Sanlorenzo (which is expected to be joined by another shipyard), has submitted a bid for the entire Tisg group; and so has Sri Global Limited Holding Company, a company 52 per cent owned by Giulio Gallazzi and in which Finvacchi holds a 48 per cent stake. Finally, market rumours suggest that the Baglietto Group is interested in the La Spezia-based assets of Costantino’s company.

Tisg, which owns the Admiral, Tecnomar, Perini Navi, Picchiotti, Nca Refit and Celi 1920 brands, is listed on Euronext Milan and has announced that it has launched a competitive process aimed at identifying potential investors as part of the company’s restructuring programme. This process is being managed by Meti Corporate Finance and KPMG Advisory, acting as joint financial advisers, “with the task of assisting the company in identifying and negotiating with potential investors”.

According to a statement, the launch of the competitive process ‘follows on from the many expressions of interest already received by the company on an unsolicited basis, and responds to the need to bring them within a single procedural framework. In order to maximise the value available to stakeholders, the company has therefore launched a competitive process to gather irrevocable bids, which will take place under the supervision of the judicial administrators’.

According to the provisions of the process letter to be sent to interested parties, the note goes on to explain, ‘the transaction may be structured in one of two ways: as an asset deal or a share deal. In the event of an asset deal, the process letter identifies, as the assets to be sold, the shipyards (the Carrara site and the La Spezia site), the Viareggio site, the Admiral, Perini, Picchiotti and Tecnomar, and the shareholdings in Celi and Tisg Turkey Yat Tersanecilik. Each bidder is invited to specify in their bid the scope of the assets of interest, which may include the business as a whole, or parts thereof, individual assets or combinations thereof. Bids covering multiple scopes are permitted, including joint bids.’