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Perini Navi too expensive?

Is Perini Navi overpriced or are interested parties using the tools at their disposal to play a game of chess?

On 24 June it was announced that Perini Navi was up for auction with a based price set at €62.5million and a security deposit of €10million. Final offers must be submitted by 12:00 on 29 July. Today, various interested parties, including Ferretti Group, Sanlorenzo and Palumbo Group, have publicly announced that they feel the base price that has been set for Perini Navi is too high.

“Palumbo Superyachts…following the view to expansion [that] began several years ago, had expressed its interest in the acquisition of the company Perini Navi complete with its brands and production sites in Viareggio and La Spezia. Given the starting price of €62.5million, which is undeniably high, the company announces that all the decisions in relation to the auction set for 30 July 2021 will be taken in the coming days,” reads an update provided by Palumbo Superyachts today.

This follows an announcement on 7 July from Ferretti Group and Sanlorenzo, after creating Newco to acquire Perini Navi in February, that they will not participate in the auction, stating that the starting price of €62.5m was “too high and not justified by the real value of the assets.”

According to both parties, the business plan to get Perini Navi up and running and to ensure the continued employment of its workforce “requires significant investments, which probably were not considered in setting the auction base.” They have, therefore, made the “albeit painful” decision to remove themselves from the auction.

Italian Sea Group, another one of the major businesses to express interest in the acquisition Perini Navi, has not yet released any information publicly commenting on the viability of the €62.5m base price.

It seems odd, however, that the businesses in question would need to take to the media to announce their disinterest or their compunction with the fees. In the case of Ferretti Group and Sanlorenzo, it is perhaps more clear-cut. By publicly announcing that they have removed themselves from contention and they have thereby removed themselves from being mentioned in line with any potential deal.

However, could it be that the public announcement on the part of Palumbo is a tactic designed to encourage creditors to apply pressure and have the base price lowered? Or could it simply be that they trying to cast doubt in the minds of businesses that are competing for the acquisition?

One thing is for certain, Perini Navi must be sold in order to satisfy the requirement to pay off its various creditors. If no legitimate bids are made, the base price may be lowered. Whether or not Perini Navi’s asking price is legitimate remains to be seen, but the location of its facilities in Viareggio and La Spezia will clearly still be of strategic interest to a number of superyacht market players.

For a detailed look at the auction process for Perini Navi and further analysis, click here

Profile links

Perini Navi

Sanlorenzo

The Italian Sea Group

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