Salini Impregilo S.p.A. has presented an offer to invest in Astaldi S.p.A. to support the restructuring of the company after it filed for concordato in bianco, an in-court restructuring proceeding under the Italian Bankruptcy Law, in September 2018.

The offer is intended to support Astaldi’s concordato preventivo proposal to be submitted to the Court of Rome with the objective of being admitted to the relative creditors’ procedure. The proposal comprises:

• An economic and financial plan to support the restructuring and continuity of Astaldi’s EPC activities;
• The separation of non-core assets (such as the company's concessions arm, which includes the third Bosphorus bridge project, the Gebze-Orhangazi-Izmi highway, the Etlik integrated health campus in Turkey, the Santiago airport and the Felix Bulnes hospital in Chile) into a unit to be liquidated with the proceeds intended for the sole benefit of unsecured creditors;
• A cash capital increase equal to EUR225 million (US$254.2 million) for 65% of Astaldi (after the capital increase), reserved to Salini Impregilo, partly dedicated to the payment of secured and supersenior debt holders, and partly supporting the continuity plan, which would result in Salini Impregilo taking a controlling stake in Astaldi following the completion of the creditors’ procedure;
• The partial settlement of unsecured creditors both in the form of shares (which will benefit from continuity of the EPC business) and other participatory financial instruments (which will benefit from proceeds of the sale of non-core assets).

Upon the Court’s approval, the proposal will be subject to the creditors’ review. If validated by the majority of creditors, it will submitted again to the Court for final approval. If approved, the completion of the potential transaction would be expected within the first half of 2020.