John Davison is set to be appointed chairman of the new turnaround investment veichle founded by Kkr, Unicredit e Intesa Sanpaolo last July and named Pillarstone Italy spa, MF Milano Finanza writes today, Davison will represent Kkr and comes from Rbs where is has been Global Head dello Strategic Investment Group till now, while he used to work for Bridgepoint and Carlyle in the past. Davidson will then join Pillarstone’s ceo Andrea Giovanelli, former Unicredit’s Head of Large Corporation Restructuring (see here a previous post by BeBeez and April’s joint press release by Unicredit and Intesa Sanpaolo),
Pillarstone’s shareholders capital is 100% owned by Kkr thorough a series of Luxembourg companies (K Equity Italy 2 sarl, K Equity Italy 1 sarl, KAG Italy 2 scs and KAG Italy GP sarl). Unicredit and Intesa Sanpaolo will not be shareholders and will subscribe both financial instruments that are going to be issued by a securitization vehicle controlled by Pillarstone (as the spv will acquire certain portfolios of receivables, basically arising from medium and long-term loans), and equity instruments (i.e. shares or participating instruments) which will be acquired directly by Pillastone Italy spa. restructuring specialist Alvarez&Marsal too won’t be a shareholder in Pillastone, but will act as preferred asset manager advisor.
Loans to be transferred to the spv for a total consideration of one billion euros are said to be versus three companies that just ended a debt restructuring process (Burgo, Orsero e Comital Saiag) and versus few other companies that are Lindberg, Manucor and Alfa Park (the greates entertainment park in Roma, the Rainbow MagicLand). Italy’s leading operator of tlc networks Sirti too might enter the list (see here a previous post by BeBeez).
Actually Pillarstone is said to put forward a bid for Sirti, joining the auction managed by advisor Lazard. Other competitors are China-based manufacturer and supplier of telecommunications equipment Zte corporation an Italy’s turanaround private equity specialist Orlando italy.
Sirti’s shareholders are facing a hard time as net financial debt skyrocketed to 280 million euros at the end of August 2014 from 189.5 millions at the end of 2013 while revenues were 387.1 millions and ebitda was 19.1 millions and the business kept on growing as at the end of 2013 revenues were 635.2 millions and ebitda 25.48 millions.
Sirti is controlled by Intesa Sanpaolo ( with a 26.84% stake, after having converted a mandatory convetible bond some years ago; the bank is also a big lender for as much as 200 million euros) while the remaing 73.16% of Sirti’s capital is owned by Hiit, a parent holding where are concentrated stakes by industrial shareholders (Techint), private equity funds (Investindustrial, Clessidra and 21 Investimenti) and mezzanine private debt funds (Ver Capital e Emisys Capital).
