Italian billionaire Massimo Moratti and his family have agreed to offload a 35% stake in Italian energy company Saras SpA (IT:SRS) to global commodities trading leader Vitol Group. The deal values Saras at €1.7 billion. SRS shares fell about 6% as of writing following the 7.2% surge on Friday in reaction to media speculation about the deal.
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Per the deal, the Moratti family will sell the stake at €1.75 per share. Further, reports suggest that Angelo Moratti, one of Massimo Moratti’s nephews, is also mulling selling his remaining 5% stake in Saras. The Moratti family has a 40% stake in Saras, of which Chairman and CEO Massimo Moratti has 20% and the remaining 20% is split equally between his two nephews via holding companies. Moratti believes that Vitol is the best strategic fit for Saras’ success.
For the Vitol Group, buying the stake of the Moratti family is one of the first steps in launching a full-fledged takeover attempt of Saras SpA. Vitol is steadily acquiring stakes in refineries and oil and gas companies across the U.S. and elsewhere. Buying Saras will give Vitol a notable entry into the sprawling refinery market of the Mediterranean.
Is Saras Stock a Buy?
Saras’ Sarroch refinery on the island of Sardinia, one of the largest single-site refineries in the Mediterranean, refines 300,000 barrels a day of oil. Post the Saras acquisition, Vitol will have its hands on over 800,000 barrels per day of refining capacity. The deal is subject to certain regulatory conditions. SRS shares have gained over 40% in the past year.
