Sunday, October 27, 2013

When the stock exchange becomes "environmental-friendly": GreenItaly1 hunting for "green stocks"

VedoGreen, the company of the IR Top Group, providing financial solutions for green companies, together with Idea Capital Funds SGR of Dea Capital/De Agostini Group, one of the most important independent Italian Private Equity operators, that manages a green economy specialized fund, and Matteo Carlotti, already among the promoters of the SPAC (Special Purpose Acquisition Company) named MadeinItaly1, promotes GreenItaly1, the first S.P.A.C. (Special Purpose Acquisition Company) specialized in Italian green companies. 

GreenItaly1, was founded with the purpose to invest in the green economy which is a very attattractive industry for investors thanks its strong technological innovation and high growth
rates, aims to collect €40 million through the listing on the AIM Italia-MAC managed by Italian stock exchange, London Stock Exchange Group, in order to succeed in a merger operation with a target company within 24 months from the listing. GreenItaly1, will be supported by Intermonte as Global Coordinator and Nominated Advisor. The firm focuses its research on Italian medium-sized companies, operating in Italy and abroad, which are active in one of the following segments of the green economy classified by VedoGreen as follows: Agribusiness, Ecobuilding, Ecomobility, Environmental Services, Green Chemistry, Lighting Solutions, Smart Energy, Waste Management, Water-Air and Noise Treatment, White Biotech.

The promotion of the first SPAC represents the concrete development of the experience gained by VedoGreen in the green economy through the creation of a proprietary database, which with more than 3,000 monitored companies is able to offer the most complete mapping of the sector in Italy. The aim is to list on the stock market an excellent green company, of solid fundamentals, with marked innovation characteristics which guarantees a path of sustainable growth. Through the SPAC investors are offered an investment vehicle characterized by a low risk profile in the initial phase and a significant upside potential in a  sector that is attracting more and more investment around the globe.

GreenItaly1 represents for the private equity fund Idea Efficienza Energetica e Sviluppo Sostenibile (IEEF) managed by Idea Capital Funds an unique opportunity to invest in an excellent company in the green economy space on which is focused the fund, with a bigger dimension with respect of medium-sized companies on which it typically invests, and with immediate access to the stock exchange and to the typical visibility of listed companies. The fund will operate both as promoter, along with VedoGreen and Matteo Carlotti, of the SPA, and as investor within the same, being confident to be able in quickly identifying a top investment opportunity, with a subsequent high increase in value, thanks to the complementary professional skills of the SPAC promoters and to the financial resources brought in by it in support of the ambitious development plans" declared Sergio Buonanno, responsible for the IEEF fund managed by Idea Capital Fund SGR SpA.

"The experience of MadeInItaly1, the first SPAC under the Italian legislation, and the success of its business combination with the SESA Group are proving, that the SPAC model - if structured in a balanced and market friendly way - can bring 'fresh' financial resources to the excellent and dynamic Italian businesses, as shown by the performance on the stock market from the beginning of year, for entrepreneurs, investors and promoters. Furthermore GreenItaly1 clearly designed on the MadeInItaly1 model is the first green Italian SPAC born to support the development of the green economy, one of the Italian best reputed and most efficient sectors in the world in terms of growth, profitability, innovation and internationally-oriented in today's national economic landscape" - Matteo Carlotti, one of the MadeInItaly1 promoters, said.

Investment criteria and target of GreenItaly1
The target company will be identifies inside the VedoGreen own database, the first and most complete classification of the industry in Italy, including more than 3,000 companies in the green economy, simplifying the scouting phase. It will be characterized by solid financial results, positive cash flows, technological innovation focus, international outlook and not tied to business government incentives.

Features and benefits of a SPAC
The SPAC (Special Purpose Acquisition Company) is a financial instrument originated in the US and than spread to Europe. It is an incorporated special purpose vehicle with the aim of gathering the financial resources necessary to acquire an operating company (target) - through placement on the capital markets - over a max. 24 month period, in order to achieve an aggregation (so-called business combination) through a merger. To protect investors, the funds raised through the IPO by the SPAC shall be provided in an escrow account with an independent custodian bank, where they remain stored until the business combination has been achieved. Among the benefits for investors, the SPAC is obliged to guarantee and give back the capital invested, if any investment transaction hasn't been performed within the specified time horizon. Compared to a private equity fund, the SPAC is designed as an entity under the regulations of the stock market and therefore it offers greater transparency and direct involvement of investors through the approval of the investment.