CDP Equity

CDP Equity, was known as Fondo Strategico Italiano (Italian Strategic Fund), was established in late July 2011 as a sovereign wealth fund.

CDP Equity
Native name
CDP Equity S.p.A.
Formerly
Fondo Strategico Italiano S.p.A.
majority state-owned S.p.A.
IndustryFinancial services
HeadquartersPalazzo Busca,
Milan
,
Italy
Key people
  • Leone Pattofatto (chairman)
  • Guido Rivolta (CEO)
ServicesMerchant bank
€249.446 million (2014)
Total assets €5.564 billion (2014)
Total equity €4.833 billion (2014)
OwnerCassa Depositi e Prestiti (100%)
Parent
Websitecdpequity.it
Footnotes / references
in separate financial statements[1]

History

It has an estimated operating balance of €4 billion. Its purpose is to invest in strategic Italian companies to help them to compete globally. The fund’s activity is restricted to healthy and profitable Italian businesses, with solid growth prospects, in need of capital injection to enlarge their business and be competitive on a global scale.[2] The initial capital of the fund totalled €1 billion, with 90% of this sum contributed by CDP and 10% from Fintecna. The CDP is ready to inject a total amount of €4 billion.[3]

The fund was set up by the state-controlled lender Cassa Depositi e Prestiti (CDP) on the directive of Economy Minister Giulio Tremonti, emulating a similar fund in France, allegedly after French dairy company Groupe Lactalis SA made a successful takeover bid for Parmalat.[4]

The fund become a member of the International Forum of Sovereign Wealth Funds and signed up to the Santiago Principles on best precise on managing Sovereign Wealth Funds.[5][6]

In September 2011, Maurizio Tamagnini, formerly a top investment banker at Merrill Lynch, was hired as the CEO of the fund.[4] The position of chairman is filled by Giovanni Gorno Tempini, who is also the CEO of CDP.[7]

On 31 March 2016 Fondo Strategico Italiano was renamed into CDP Equity.

On 5 August 2016 Bank of Italy withdrew its 20% stake from CDP Equity.[8]

Investments

In May 2012, the Italian Strategic Fund stated that it would give financial backing to help fund a project that will bring fiber-optic cable to Italy’s main cities, as part of the country’s attempt to increase high-speed internet connectivity. The €4.5 billion project, led by fibre-optic company Metroweb (was a subsidiary of F2i First Fund via F2i Reti TLC) will receive an initial €200 million from Fondo Strategico Italiano through F2i Reti TLC. There is also an option for the fund to provide a further €300 million.[9]

In May 2012, the Fondo Strategico Italiano acquired an 18.6% stake in biopharmaceutical company Kedrion S.p.A from holding company Sestant S.p.A for a total of €150 million. In addition, the Fondo Strategico Italiano has an option to acquire a majority stake in Kedrion from Sestant.[10]

Also in May 2012, the defence and aerospace group Finmeccanica agreed to sell its 14% stake in aero-engine parts maker Avio to the Fondo Strategico Italiano. According to Finmeccanica, the deal is subject to Avio being listed on the Milan stock exchange before the end of 2012.[11] In November 2012, Prime Minister Mario Monti, signed with the Government of Qatar a €2 billion development project; the main investor is Qatar Holding.

It was announced in March 2014 that the Fondo Strategico Italiano had made a non-binding offer for a 30% stake in the Spanish olive oil producer Deoleo.[12]

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References
  1. "2014 Bilancio" [2014 Annual Report] (PDF) (in Italian). Fondo Strategico Italiano. 19 May 2015. Archived from the original (PDF) on 22 December 2016. Retrieved 26 September 2016.
  2. SWF Institute. "Italian Strategic Fund". SWF Institute.
  3. SWF Institute. "Italian Strategic Fund". SWF Institute.
  4. Christopher Emsden (12 September 2011). "Tamagnini Named CEO of Italian Strategic Fund". Wall Street Journal.
  5. International Forum of Sovereign Wealth Funds. "IFSWF Our members". Archived from the original on 27 September 2016. Retrieved 24 September 2016.
  6. CDPequity.it. "Invest with CDP Equity". Retrieved 28 October 2016.
  7. Bloomberg Businessweek. "Executive Profile: Giovanni Gorno Tempini". Bloomberg Businessweek.
  8. "The Bank of Italy's capital withdrawal from CDP Equity (formerly FSI SpA)". Bank of Italy. 5 August 2016. Retrieved 9 August 2016.
  9. Stephen Jewkes, Luca Trogni and Danilo Masoni (28 May 2012). "Italy fund to inject up to 500 mln euro in fibre rollout". Reuters.
  10. Research Views (28 May 2012). "Fondo Strategico Italiano Acquires 18.6% Stake In Kedrion From Sestant For $188 Million". Research Views. Archived from the original on 1 February 2013.
  11. Stephen Jewkes and Hans-Juergen Peters (31 May 2012). "Finmeccanica to sell Avio stake to state-led fund". Reuters.
  12. "Italy strategic fund says made offer for stake in Spain's Deoleo". Reuters. 6 March 2014. Retrieved 6 March 2014.
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