Saudi Arabia NEOM Investment Fund (NIF) will hold 6% of Technogym share capital after an 111-million-euro ($120.83 million) investment and intends to be a long-term minority shareholder in the Italian fitness-equipment maker, it said on Friday.
In a reverse accelerated bookbuilding (RABB) operation on Thursday, NIF bought 8.8 million shares at 9.20 euros each from other investors and entered a derivate solution for the purchase of a further 3.3 million ordinary shares, the statement said.
Shares at Technogym were up 6.1% at 8.48 euros per share at 1150 GMT, after closing on Thursday at 7.99 euros per share. The price paid by NIF represents a 15% premium compared to Thursday's Technogym closing price.
The news is deemed positive as it anticipates important medium-term business opportunities in the Middle East, analysts at Italian broker Equita said.
The move does not entail any share dilution for the other shareholders of the company, according to the statement.
Technogym is controlled by its founder and president Nerio Alessandri.
"NIF believes in the value creation potential of Technogym given the company's history of steady growth and leading market position globally," the statement added.
JP Morgan acted as sole bookrunner for the transaction, while Rothschild acted as financial advisor to NIF.
In September Rome and Riyadh signed an agreement to strengthen economic ties and boost investments, focusing on areas such as energy, sustainability, supply chains and sport.
($1 = 0.9186 euros)
(Reporting by Giulia Segreti and Elisa Anzolin, editing by Gianluca Semeraro, Tomasz Janowski and Andrea Ricci)