Italy-based Lucchini Group, owned by Russian tycoon Alexei Mordashov, could change hands soon after the summer, according to Italian financial newspaper Milano Finanza. It is reported that some buyers intend to close a deal in the near future, in other words by September or October.
As previously reported by SteelOrbis, in February the Italian steelmaking group reached an agreement with creditor banks (i.e., BNP Paribas, Intesa SanPaolo, MPS and UniCredit) to restructure Lucchini's €770 million debts on a long-term basis. The lending institutions are exerting increased pressure on the Russian ownership, in the hope of finding financially solid buyers.
In the last months, several rumors have spread about potential buyers. However, according to Milano Finanza, only two companies are likely to invest in the Italian steelmaking group: Vicenza, Italy-based leading European merchant bar producer Beltrame and US private equity investment fund Apollo. The latter, indeed, only one month ago offered €300 million (plus €100 million for debt), for the ownership of Lucchini's French subsidiary Ascometal.
Reliable sources state that Mordashov will sell the company shortly, adding that he has already received some inquiries, though the figures involved are lower than his price idea. Meanwhile, the restructuring of the debt and the recovery of the steel industry weigh in his favour, as in 2010 Lucchini Group's sales revenue increased by 41 percent year on year to $2.49 million, with a net loss of $135 million compared to a net loss of $362 million in 2009.