Palladio, NB Renaissance considering Rina exit ahead of IPO

Micaela Osella, Valentina Caiazzo
09 August 2021

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Private equity firms Palladio and NB Renaissance Partners are considering selling their minority stake in Italian transportation service Rina following unsolicited approaches, according to several sources.

A spokesperson for Rina denied that Palladio and NB Renaissance are looking at selling, adding that no formal sale process has been launched and no unsolicited offers have been received.

An IPO remains the sponsors' preferred exit option, a source close to and two sources familiar with the situation said, adding that Rina is taking its time with the listing as its timing depends on how the Covid-19 pandemic evolves.

However, Palladio and NB Renaissance have recently begun considering selling their stake following approaches from two undisclosed financial investors, the sources said. These investors expressed interest in buying the company's majority interest, they said.

The situation is at an early stage, but management would be keen to evaluate approaches from further sponsors interested in a minority stake sale in case of compelling offers, the sources added.

Palladio and NB Renaissance together hold 27% of Rina. The company is controlled by Registro Italiano Navale, which owns a 70% stake, while management holds 3%, the spokesperson said.

Preparations for an IPO began in March 2020, when the company mandated Lazard to advise on the listing and on an acquisition campaign. While the company is ready for a listing now, the adviser prefers to wait until naval services are under less pressure from the coronavirus pandemic, one of the sources familiar said.

The listing project is not on hold, the company spokesperson said, as preparatory work has not yet begun. The IPO remains on Rina's agenda for the mid-term while management focuses executing its growth plan, she added.

In January, citing chair Ugo Salerno, the Italian press reported that Rina intended to go public in two years' time. The company was in no rush to list as it was in an excellent financial position and acquisitive, the report added.

Palladio, NB Renaissance and Lazard declined to comment.

Earlier this week, Rina reported revenues of EUR 258m for H1 2021, up 10% compared to the same period of the previous year, with an EBITDA margin of 15.4%, according to a company press release.

Established in 1861, Rina is Italy's largest specialist in classification, certification, testing, inspection, training and consulting engineering services for the shipping, energy, transport and infrastructure sectors.