(Alliance News) - Following the news given by Saras Spa on the funded collar transaction between ACM Spa and Bank of Amercia, comes a clarification note from both the fund and Angelo Moratti.
"The funded collar transaction in question between Angel Capital Management Spa and BofA Securities Europe SA is in the nature of a financing transaction, with provision for a disbursement of a sum of money from BofASE to ACM as an interest-bearing loan and a collar derivative, for hedging purposes, concerning a maximum of 47.6 million ordinary shares of Saras Spa. On Feb. 1, 2023, BofASE - in total autonomy from ACM completed an accelerated book building transaction having as object Saras shares for the purpose of hedging the long position taken under the collar," BofA specified. Friction Bearing
Which added, "For the purposes of the ABB, BofASE from what BofASE represented to ACM has resorted to a securities loan with third parties, without any direct or indirect involvement of ACM. From what was also represented by BofASE to ACM, Saras shares were sold by BofASE under the ABB at a placement price of EUR1.54 per share."
Angelo Moratti, executive chairman of ACM said, "As ACM has already indicated, the signing of a financing agreement and funded collar with BofASE are functional to the continuation of the investment strategy that ACM has been pursuing for years. ACM and I continue to have full confidence in Saras and its prospects; as proof of this, ACM has not sold a single Saras share and the options under the funded collar agreement provide for cash settlement as a general rule, without prejudice to the possibility for ACM to opt for a delivery of the shares upon exercise of the options."
"ACM, in addition to remaining the owner of the shares pledged under the transaction concluded with BofASE, retains the right to vote on them, except in the event of enforcement of the guarantee. With the conclusion of these contracts with BofASE, ACM has therefore not put in place any disengagement strategy with respect to Saras."
By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter
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