Monday 14 January 2019 Hospitals and healthcare facilities Project Financing
Rekeep sells a 95% interest in its subsidiary MFM Capital to 3i European Operational Projects SCSp
MFM Capital holds interests in Rekeep’s main Special Purposes Vehicles (SPVs), the concession companies formed with joint venture partners to manage awarded projects. The transaction seeks to monetize Rekeep’s concession assets and build a strategic partnership with 3i European Operational Projects in order to pursue additional concession projects in the future.
Rekeep S.p.A. announces that it has entered into an agreement for the sale of a 95% interest in MFM Capital S.r.l. (“MFM Capital”) to 3i European Operational Projects SCSp (“3i EOPF”), a fund managed by 3i Investments plc, for a total consideration of up to approximately €16 million.
MFM Capital holds interests in Rekeep’s main Special Purposes Vehicles (SPVs), the concessions companies formed with joint ventures partners to manage awarded projects. In particular, MFM Capital holds interests in the following entities: (i) Synchron Nuovo San Gerardo S.p.A. (San Gerardo Hospital in Monza); (ii) Arena Sanità S.p.A. (Borgo Roma Hospital and Borgo Trento Hospital in Verona); (iii) Genesi Uno S.p.A. (Civil Hospital in Legnano), (iv) Sesamo S.p.A. (Baggiovara Civil Hospital in Modena); (v) Terza Torre S.p.A. (Emilia Romagna Region - Offices); and (vi) Alessandria Project Value S.r.l. (Alessandria Municipality – Real Estate Assets).
3i EOPF will pay Rekeep a total consideration of up to approximately €16 million in installments, of which €8.7 million paid on signing of the agreement. The remainder will be paid in part at the end of the construction phase of the projects yet to be commissioned and in part subject to the performance of individual SPVs reaching defined thresholds.
Rekeep Group, in addition to retaining the 5% interest in MFM Capital, also remains a direct shareholder in the SPVs through a minority stake – therefore committed to continued support for the development of the relevant projects.
The transaction, which has obtained regulatory clearance, signals the beginning of a strategic partnership with 3i EOPF, with the aim to develop additional concession projects in the future. This partnership combines the operational knowhow of the Rekeep Group and the financial expertise of an international investment firm, thereby consolidating a track record of value creation through global strategic alliances.
NCTM Studio Legale acted as Legal Advisor to Rekeep S.p.A., while STF – Società Tecniche Finanziarie acts as Financial Adviser.
Giuliano Di Bernardo, Chairman and Chief Executive Officer of Rekeep S.p.A., remarked: “We are very pleased to have signed this agreement, not only because of its importance from a financial standpoint, but most of all because it marks the beginning of an international strategic partnership with 3i European Operational Projects, a prestigious player, which aims to pursue future concession projects together with our Group”.
