Saras passes from the Moratti family to Vitol, with the government deciding not to make use of the golden power. A note from the Saras group on behalf of Vitol reveals that the Presidency of the Council of Ministers has issued a decree with provisions that they do not hinder the completion of the deal. This implies that one of the fundamental conditions for the success of the operation has been satisfied.
The figures of the sale
Everything is therefore ready for the sale of the Saras oil group to the Swiss-Dutch company of Vitol, with the Moratti family who will give them the 35% of the shares.
Thanks to the government decree, the operation can proceed without obstacles, thus opening the doors to a new phase for Saras. Currently, Vitol owns 10,461% of the shares, but at the end of the operation it will rise to 45.48%, as well as launching a mandatory takeover bid for the remaining shares at a price of 1.75 euros each. This implies a capitalization of Saras of approximately 1.7 billion euros, with the possibility of adjusting the price based on the dividends distributed. The objective of the takeover bid is to withdraw Saras ordinary shares from listing and trading on Euronext Milan. As part of the deal, the Morattis will receive over 582 million euros. Saras currently has 1,576 employees and reported a turnover of 15.8 billion euros in 2022.
Vitolwith annual revenues exceeding $500 billion, is considered the world’s leading oil trader. The company enjoys a large international presence, with refineries located in Europe, the Middle East and Australia, and has a range of downstream and storage businesses.
The history of the acquisition
The story begins on February 20, when Consob reveals that Vitol acquired iL 4.6% of the shares of the Moratti company through Angel Capital Management. On 11 February, the Moratti family signed an agreement with Vitol, committing to sell 35% of Saras shares. This transaction involves various branches of the Milanese family in the oil sector, which, through three holding companies, hold a total of 40% of Saras: Massimo Moratti sapa, chaired by the former president of Inter, owns the entire share package, with 50 % in bare ownership assigned to the sons Angelomario and Giovanni.
In addition, subject to certain conditions, Angel Capital Management has agreed to also sell 5% of Saras, subject to a loan guaranteed with a funded collar derivative contract, stipulated with Bank of America in February 2023. This will entail a further collection of 47.5 million euros for Angelo Moratti’s holding company.
The conditions imposed by the government on Vitol for the purchase of Saras
Vitol will be required to ensure that Saras plants maintain their current full operational capacity of refining and that they are kept efficient according to current maintenance programs. The new ownership will also have to ensure the continuity of supplies and exports of refined products to the Italian and European markets, maintaining current quality standards. The provisions also include the obligation for the buyer to maintain the current supply of electricity to the national electricity system, at least until Saras’ plants are considered essential for the security of the system and are entitled to reimbursement of costs.
Furthermore, Vitol will have to guarantee a quantity of production destined for the Italian market not lower than the average production of the last five years. Other requirements concern the maintenance of the investments already planned in the Saras industrial plan for the ecological transition and the implementation of procedures for the traceability and verification of the origin of the raw materials and semi-finished products used in the Saras production cycle.
The plant directly employs approx 1,300 workers and provides employment to an additional 3 thousand related workers. In 2022, the latest year for which the company has published data, Vitol delivered 7.4 million barrels equivalent of crude oil and derivatives (down from 7.6 million in 2021), generating revenue of 505 billion dollars, an increase of 91% compared to 279 billion the previous year. Additionally, the company has invested $2 billion in environmental sustainability projects.
