Salini Impregilo considers share placement

Salini Impregilo has said it is considering issuing new shares for sale to institutional investors. Equity equivalent to 10% of the company’s existing capital could be issued, and at the same time majority shareholder Salini Costruttori said it may sell some of its stake in Salini Impregilo.

The company said it was considering the move to increase the free float of Salini Impregilo shares – the shares in the company traded in public, as opposed to those tied-up with controlling investors and other long-term holders. Salini Costruttori currently owns 89.95% of Salini Impregilo, with the remaining 10.05% - just under 45 million shares – being traded as free float.

However, Salini Costruttori said that if it did go ahead with the plan, it would retain enough equity to stay the majority share holder in Salini Impregilo.

Salini Impregilo is currently capitalised at around € 2 billion, so the sale of new shares could raise in the region of € 200 million. The company said the proceeds would be used to strengthen its capital base and pursue its business plan.

Salini and Impregilo merged in 2013, following a proxy battle between the two companies during 2012.