Saipem core investors Eni and CDP together with a pool of banks are ready to advance 1.5 billion euros of an overall 2 billion euro capital increase to rescue the troubled Italian energy service group, two sources said.
The two investors, tied by a shareholder pact, will stump up in advance most of their share of the planned cash call by injecting more than 600 million euros, one of the sources said.
At the same time Eni, which owns 30.4% of Saipem, will temporarily guarantee a bridge-to-cash call loan provided by a pool of eight banks worth 855 million euros ($941 million).
State-owned trade credit insurer SACE is then expected to step in, at a later date, to guarantee the bridge loan when it has had time to process complex paper work, two sources said.
On Wednesday CDP Chief Executive Dario Scannapieco said he was confident about finding a solution for Saipem.
Saipem shares, which have lost more than 40% since the start of the year, were up 7.4% in late trading.
Saipem stunned investors in January when it downgraded earnings by a billion euros due to a significant deterioration of margins on some contracts, sending its shares tumbling.
In February it said it would cut costs, sell assets and scale back green ambitions to focus more on its core oil and gas business after plunging into the red last year.
It is due to unveil its turnaround plan and rescue package on Friday.
Source: Reuters
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