Asian private equity firm FountainVest secured backing from the Italian government to buy a majority stake in electric motor component maker EuroGroup Laminations, a document seen by Reuters showed, part of a plan to take the company private.
Shares in EuroGroup Laminations rose 7.4% following the Reuters report.
The Italian government cleared the deal on December 29 by imposing some unspecified conditions under so-called golden power rules aimed at shielding strategic assets, added the document, which was sent to parliament.
Italy makes extensive use of its golden powers to block or set conditions on domestic and foreign takeovers, triggering criticism from companies and European Union authorities which urge avoiding excessive interference in business matters.
EMS Euro Management Services last year agreed to sell its 45.7% stake in EuroGroup Laminations to an investment vehicle owned by FountainVest for 3.85 euros ($4.48) per share.
Under the transaction, which also includes a tender offer aimed at delisting EuroGroup Laminations, EMS Euro Management Services would reinvest 50% of the proceeds from the sale into a new holding company set up with FountainVest to own the target firm.
At the closure of the deal, expected in the first half of 2026, the new holding would own 55.3% of the voting share capital in EuroGroup Laminations.
Reuters
