Story
Industrie De Nora Shares Attempt Recovery After Snam's Discounted €67M Stake Sale
Summary
Shares of the Italian electrode maker edged higher after tumbling 18%, following gas grid operator Snam's sale of a 5% stake at a significant discount as part of a strategic asset rotation.
Shares of Industrie De Nora staged a modest recovery on Wednesday, a day after plunging 18% following the sale of a significant stake by Italian gas grid operator Snam. The sell-off was triggered by Snam's announcement that it had placed the shares at a considerable discount to the market price.
Details of the Placement
Snam, through its unit Asset Company 10, sold approximately 10 million shares in the electrode manufacturer via an accelerated bookbuilding process. The transaction reduced Snam's holding in Industrie De Nora to 16.6%.
Key figures from the sale include:
- Placement Price: The shares were sold at €6.69 each, representing a 9.5% discount to Monday's closing price.
- Total Proceeds: The sale generated gross proceeds of approximately €67 million (about $77 million) for Snam.
- Share Conversion: Snam noted that the shares sold were converted from multiple-voting shares into ordinary shares upon their transfer.
AdMarket Reaction
The discounted placement price prompted a sharp negative reaction from investors, sending Industrie De Nora's stock down 18% in the previous session. By 07:35 GMT on Wednesday, the stock had edged up 0.7% to €6.10. However, the share price remained well below the €6.69 placement price, indicating continued investor caution.
Snam's Strategic Rationale
The divestment is a component of Snam's broader 2026-2030 strategic plan, which includes an asset-rotation program targeting around €3 billion. According to Snam, this strategy is designed to streamline its portfolio and reallocate capital towards core business activities and investments in the energy transition. Industrie De Nora is a specialist in electrochemical technologies used in green hydrogen production, water treatment, and other industrial applications.
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