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