GIC to invest S$2.1b for 14.3% stake in Italy-based Sintonia

GIC to invest S$2.1b for 14.3% stake in Italy-based Sintonia

Posted: 11 March 2008 2348 hrs


SINGAPORE: The Government of Singapore Investment Corp is investing S$2.1 billion into Italy-based investment company, Sintonia.

A statement by Sintonia said GIC Special Investments will acquire a 3 percent stake and also undertake to subscribe to a capital increase in the company.

Eventually, GIC will own a fully diluted stake of about 14.3 percent in Sintonia, which is aiming to raise 4 billion euros or S$8.5 billion to fund investments in Italy and abroad, and to expand its infrastructure interests.

Together with GIC's investment, Sintonia would have secured 2 billion euros in investment commitments.

Sintonia is one of two holding companies belonging to Italy's Benetton family. It has stakes in the Italian highway operator Atlantia and the country's largest telecoms operator, Telecom Italia.

Sintonia also owns nearly 96 percent of the Rome airport operator Aeroporti di Roma.

This is believed to be the first time that a sovereign wealth fund has invested in a large Italian company. The deal is expected to be completed by the second quarter of this year.


- CNA/so

Published March 12, 2008

GIC to invest 1b euros in Sintonia


(SINGAPORE) The Government of Singapore Investment Corporation is investing about a billion euros (S$2.1 billion) in an infrastructure holding company, Sintonia SA. Under the deal, GIC Special Investments (GICSI) will acquire a 3 per cent stake in Sintonia SA from Sintonia SpA, which is controlled by the Italian clothing family Benetton. It will also subscribe to a capital increase in Sintonia SA to reach a fully diluted stake of about 14.3 per cent.

The deal is subject to customary regulatory approvals and is expected to close in the second quarter, Sintonia said yesterday. After closing, the fully diluted ownership of Sintonia SA will be 66.6 per cent for Sintonia SpA, 14.3 per cent each for GICSI and a Goldman Sachs-managed infrastructure fund GS Infrastructure Partners, and 4.8 per cent for Mediobanca.

Among Sintonia's assets are stakes in highway manager Atlantia and Telecom Italia, Italy's largest phone group.

Sintonia said that it aims to raise about four billion euros to make investments in Italy and abroad and expand its platform of infrastructure investments.