Rome, 12th January 2016
The timing for the FS Group listing process “will depend upon its performance in terms of efficiency” and the DPCM approval “represents the formal starting point of FS share’s partial sale, whose deadline remains subject to market conditions and the company’s capability to be listed”. This is what the Italian Minister of Economy and Finance, Pier Carlo Padoan, told today to the Chamber of Deputies about the privatization of FS Italiane which “will take place through a public sale offering on the Milan Stock Exchange”.
Padoan stated that “the Holding selling procedure is the most efficient, as also proved by other well-established Italian companies (Enel, Eni and Poste)” and that “the infrastructure property will remain public, being the infrastructure property and management already separated.”
The Minister added that the Government aims at reaching three targets through the FS’ privatization: the Group business and services’ growth; the establishment of a public, spread ownership, among employees and retail investors; raising of funds in order to decrease public debt. “Privatization proceeds – Mr. Padoan continued – will contribute exclusively to the Government bonds’ amortizing fund and to finance the public debt reduction.”
Additionally, according to Mr. Padoan, by selling only the High Speed “there are chances to lose the opportunity to improve other transport sectors, being such enhancement a part of the strategic goal.”
About public local transport the Minister of Economy has highlighted that “investment in LPT are urgent but the relevant funding will not necessary arise from privatization”. “Higher efficiency and access to the market should guarantee cheaper financial means.”
“A listing company – Mr. Padoan went on – can increase its investment capability, matching investment need in less profitable sectors as the local public transport.” “One of the privatization purposes - the Minister has reminded – “is to have company capable of foreseeing the market and diversifying its financing resources. The privatization will partly release the State from some contributions to FS and allows the company to access to new sources of funding for investments.” “Proceeds from the sale of not more than 40% of the Holding will contribute to public debt reduction in order to comply with law commitment as well with the UE, assuring the 0,5% per annum of the GPD from the privatizations during 2016-2018.”
Padoan concluded that “FS Group is one of the major industrial institutions in Italy, a strategic company and a key infrastructure, with important technical and management skills.”