Invitalia has completed its entry into the former Ilva company with 50% of the share capital and with new directors: we want to pursue the perspective on which we have started, finalize it as part of a national steel strategy. The Minister of Economic Development Giancarlo Giorgetti made official, during the question time in the Chamber, the return of the State in the capital of ArcelorMittal Italia, formerly Ilva and in the past Italsider. The first sum to be paid is 400 million. Then, in a year, another 680 million will be needed.
The new board of directors
The completion of the transaction was expected from February, as was foreseen by the agreement of 10 December which defined, in fact, the co-investment of the State – through Invitalia – with a first operation on the capital of 400 million for entry into the capital. of AM InvestCo, the ArcelorMittal company that manages the steel plants. Giorgetti can now indicate the three names for the new board of directors. The minister did not pronounce himself during the question time, but according to what appears to the Corriere della Sera will be Franco Bernab, former CEO of Eni and Telecom Italia, for the presidency and, for the role of directors, Stefano Cao, CEO of Saipem since 2015 (now out) and Ernesto Somma, professor of Industrial Economics at the University of Studies of Bari, former head of cabinet of Carlo Calenda al Mise and now head of incentives of Invitalia.
The name change
After the announcement by Minister Giorgetti, the ArcelorMittal press release on the public-private partnership with Invitalia also arrived. Which invested 400 million euros in the share capital of AM InvestCo Italy, the company controlled by ArcelorMittal which signed the contract for the rental and purchase of the Ilva business units, thus obtaining a stake in the share capital equal to 38% and voting rights equal to 50%. The jointly controlled company AM InvestCo Italy will be renamed Acciaierie d’Italia Holding and its main operating subsidiary ArcelorMittal Italia will be renamed Acciaierie d’Italia.
The gas game
It will be a next meeting, shortly, to appoint the new board of 6 members, 3 of the public part (who will express the chairman) and as many of the private part, to which the managing director remains (currently Lucia Morselli). The entrance of the state restarts a machine that was left on standby. And that foresees a future also with gas. The next game, in fact, is the identification of the external company that will carry out the pre-reduced (the so-called Dri) with natural gas for a greener and decarbonised production with electric ovens, as indicated in the industrial plan of the Recovery plan.
The completion of the transaction
In about a year or so, another 680 million will also be needed to complete the state entry operation. Because the agreement of 10 December provides for a second investment, by Invitalia, of up to 680 million euros: it will arrive at the closing of the purchase by AM InvestCo of the Ilva business units, by May 2022: at that Invitalia’s stake in AM InvestCo will reach 60%, with ArcelorMittal investing up to 70 million to keep 40%. A closing, however, subject to the fulfillment of various conditions precedent, including the release from seizure of the iron and steel plants in Taranto. The others are: the modification of the environmental plan in force to take into account the modifications of the new industrial plan and the absence of restrictive measures – in the context of the criminal proceedings in which Ilva accused – against Acciaierie d’Italia Holding or its subsidiaries. Should the suspensive conditions not occur, Acciaierie d’Italia Holding would not be obliged to complete the purchase of Ilva’s business branches and the capital invested in them would be returned.