Vitol acquiring 35% of Italian energy firm Saras
Vitol announced an agreement to purchase an approximate 35% stake in Italian refiner and power generator Saras S.p.A. from the Moratti family. Vitol is a leading international energy and commodities trader with its headquarters located in Geneva, Switzerland.
The EUR1.75 (USD1.89) per share purchase values Saras at around EUR1.7 billion (USD1.83 billion). It represents premiums of 10% over the unaffected price and up to 30% over the 12-month average.
The deal will trigger a mandatory tender offer from Vitol for outstanding shares, targeting delisting from the Milan Stock Exchange.
The Saras Group is involved in the supply, refining, and marketing of petroleum products. Founded in 1962 by Angelo Moratti, Saras S.p.A. operates Italy’s largest single-site refinery at 300,000 barrels per day and one of Europe’s largest refineries, located in Sarroch, on the island of Sardinia, Italy. Saras also has operations in the production of electricity through its subsidiary, Sarlux. It has 575 megawatts (MW) of power generation covering more than 40% of Sardinia’s needs and 171 MW of operational wind assets.
“After 62 years, we believe aggregation with a global leader like Vitol ensures future success for the Sarroch refinery and its stakeholders,” said Saras Chairman and CEO Massimo Moratti.
Vitol CEO Russell Hardy added: “We’re committed to continuing the Moratti legacy of diligent stewardship, safe operations and community support.”
Completion is exclusively subject to required regulatory approvals. Upon completion, Vitol will be invested in more than 800,000 barrels per day of refining capacity across seven refineries, 4 gigawatts (GW) of thermal power generation and more than 1.4 GW of renewable generation.
The Moratti family is advised by BofA Securities and Four Partners Advisory as financial advisors and Linklaters as legal advisor. Vitol is advised by J.P. Morgan as sole financial advisor and by Chiomenti and Weil, Gotshal & Manges as legal advisors.
