By Inti Landauro and Elvira Pollina PARIS, March 31 (Reuters) - Italian infrastructure group Mundys is aiming to build a stake of up to 29.9% of voting rights in Getlink, the Paris-based Channel
Italy’s Mundys builds stake in Eurotunnel operator, closing in on Eiffage
Mundys Increases Stake in Getlink Amid Strategic Moves in European Infrastructure
By Inti Landauro and Elvira Pollina
Mundys’ Stake-Building Strategy
PARIS, March 31 (Reuters) - Italian infrastructure group Mundys is aiming to build a stake of up to 29.9% of voting rights in Getlink, the Paris-based Channel Tunnel operator, through two transactions that would bring it close to top shareholder Eiffage.
Details of the Transactions
Mundys said on Tuesday that it had agreed to raise its stake in Getlink by 3.5 percentage points to 19% and could acquire a further 6% of the company. It expects to secure regulatory approval for that purchase next month, which would take its equity stake to 25% and its voting rights to just shy of the 30% threshold that would trigger a mandatory takeover under French rules.
Eiffage’s Position and Strategic Intentions
French construction group Eiffage remains Getlink's biggest investor with 29.4% of the shares and 29.5% of voting rights, it said in a statement to Reuters.
Eiffage’s Commitment to Getlink
"Eiffage is unquestionably a long-term investor in Getlink, supporting its strategy, its management and all its employees," it said.
"This asset forms part of Eiffage’s Europe-wide development strategy and is in line with the strengthening of our concessions portfolio."
Market Context and Future Prospects
Mundys’ move comes as traffic through the Channel Tunnel is expected to grow, said two sources close to the matter.
Competition and Market Dynamics
Rail operator Ferrovie dello Stato Italiane is planning to operate on the Paris-London route, in direct competition with Eurostar. The sources added that Mundys is also seeking to increase exposure to the company, which it views as defensive and offering solid returns at a time of heightened market volatility.
Share Performance and Financial Details
Getlink’s shares were up almost 4% by 0945 GMT. While the move gives it greater influence over shareholder votes, Mundys said it had no intention of taking control of the company or seeking additional board representation.
It did not disclose how much it paid for the additional shares. Based on Getlink's market valuation of close to 10 billion euros, the combined 9.5% stake acquired by Mundys would be worth about 950 million euros.
Ownership Structure and Additional Information
Mundys is controlled by the Benetton family’s holding company, Edizione, while U.S.-based private equity firm Blackstone is its second-largest shareholder.
($1 = 0.8718 euros)
(Reporting by Inti Landauro and Elvira PollinaWriting and additional reporting by Mathieu RosemainEditing by Sudip Kar-Gupta, Kirsten Donovan and David Goodman)
