Saudi NEOM Investment Fund Acquires 6% stake in Technogym
The Saudi NEOM Investment Fund announced its acquisition of a 6% stake in the Italian company Technogym, after chanelling investments worth 111 million euros ($120.83 million).
It indicated that it intends to become a shareholder in the company with a minority stake in the long term. The company specializes in manufacturing fitness equipment.
The fund added in a statement that it bought 8.8 million shares at a price of 9.20 euros per share from other investors. In addition, it is seeking to buy 3.3 million ordinary shares in the form of financial derivatives.
Technogym shares rose yesterday, Friday, by 6.8% to 8.54 euros per share, after ending Thursday’s session at 7.99 euros per share.
The price paid by the fund represents a 15% premium compared to the closing price of the company’s shares on Thursday.
Italian-Saudi Relations
Rome and Riyadh signed an agreement in September to strengthen economic relations and increase investments, focusing on areas such as energy, sustainability, supply chains and sports.
Italy is making strides in strengthening its strategic partnership with Saudi Arabia. Italian Foreign Minister, Antonio Tajani, expressed Italy’s desire to enhance friendship and reaffirm the strategic partnership with Saudi Arabia. The objective is to capitalize on Saudi Arabia’s rapid growth, especially in the energy and renewable energies sector.
Italy and Saudi Arabia: A Growing Partnership
Italy recognizes the immense potential for collaboration with Saudi Arabia, especially with the ambitious Saudi development plan, Vision 2030.
Tajani believes that this plan can provide intriguing opportunities for Italian companies in various sectors, including tourism, innovation, artificial intelligence, renewable energy, and entertainment. The Italian government places significant importance on Saudi Arabia as an economic partner in the Gulf region.
The Saudi-Italian trade exchange volume witnessed a 40% substantial increase in 2022, reaching 11.5 billion euros ($12.7 billion). This growth highlights the strengthening economic ties between the two countries and serves as a testament to the potential for further collaboration.
Encouraging Saudi Investments in Italy
To foster deeper economic engagement, Italy is keen on attracting new Saudi investments in sectors of strategic importance. The memorandum encouraging direct bilateral investments, signed in September, serves as a framework for facilitating such investments.
The Italian government values the potential of these new Saudi investments and recognizes their significance in driving growth and prosperity.
Energy and Renewable Energies Sector Cooperation
One area of particular focus for Italy and Saudi Arabia’s partnership is the energy and renewable energies sector. Italy aspires to become a prominent energy center for the European market, aligning with its goal of transitioning to more sustainable and renewable energy sources. To achieve this, enhanced cooperation with Saudi Arabia in this sector is crucial.
Italian Minister’s Visit to Riyadh
Italian Foreign Minister Antonio Tajani’s two-day visit to Riyadh further emphasizes the importance of the Saudi-Italian partnership. During his visit, Tajani will meet with his Saudi counterpart, Prince Faisal bin Farhan, as well as the Minister of Commerce, Majid Al-Qasabi, and the Minister of Investments, Khalid Al-Falih. Tajani will also participate in the inauguration of a new metro line in the capital, Riyadh. The line was constructed with the support of an Italian company.
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