TISG auction: Azimut-Benetti steps back, Palumbo bids

Azimut-Benetti will reportedly not join the next round of bidding for The Italian Sea Group (TISG) assets, leaving SRI Global’s €220m proposal as the leading offer while the Florence court considers whether to admit a late bid from Palumbo.

Italian financial newspaper Il Sole 24 Ore reports that Azimut-Benetti’s existing €210m binding offer remains in place. However, a letter from group owner Giovanna Vitelli to TISG’s advisers, dated 10 November, confirms the company will not take part in the next phase.

Bidding is due to take place on 16 November under court supervision and before a notary.

Palumbo submits late proposal

Naples-based Palumbo submitted an unexpected €221m acquisition proposal overnight between 9 and 10 November, after the deadline for binding bids had passed.

According to reports, the proposal appears to lack a security deposit and covers only part of TISG’s business. The Florence court must now decide whether to admit it.

The bid is €1m higher than SRI’s offer, although the difference in the assets covered means the two proposals cannot be compared directly.

SRI’s €220m bid covers the entire business, including the Italian and Turkish shipyards and the Umbrian joinery company Celi. Il Sole 24 Ore reports that a further €40m is earmarked for investment.

TISG initially selected SRI’s proposal as the basis for its restructuring plan, filed with the court on 2 November after its board reviewed five binding offers. SRI is controlled by Giulio Gallazzi and Bernardo Vacchi, with stakes of 52 per cent and 48 per cent respectively.

It is understood that bids in the next round must exceed the leading offer by at least 2.5 per cent. With SRI’s €220m proposal as the starting point, the first increase would need to be at least €5.5m.

Azimut-Benetti cites due diligence concerns

Azimut-Benetti’s €210m offer excluded the Turkish shipyard and Celi, the group’s Umbrian joinery business. Il Sole 24 Ore confirms Vitelli’s letter concludes that its due diligence had not provided a sufficiently reliable basis for an investment decision, stating: “the overall picture that has emerged following the confirmatory due diligence is not sufficiently clear, complete and consistent.”

Court process continues

The restructuring proposal provides for an initial lease followed by a sale, allowing yacht construction to continue while the transaction progresses.

It is understood the court has ruled out a sale of shares and separated the transfer of the operating business and employees from the process for dealing with the existing company’s debts.

Toscana 24 Economia (T24) says the court has requested further documents concerning the mortgage securing a €150m bank loan and dividend payments made in 2023–2024.

The outcome affects around 500 direct employees, according to T24, as well as owners with yachts under construction. TISG’s brands include Admiral, Tecnomar, Perini Navi and NCA Refit.

Trading in TISG shares has been suspended since 3 November. The company has also postponed approval of its half-year accounts to 10 December while it assesses how the restructuring affects its finances and whether it can continue as a going concern.

The crisis is underpinned by the continuing fallout from the August 2024 sinking of the superyacht Bayesian, built under TISG’s Perini Navi brand. TISG has argued that the disaster – which resulted in the immediate death of seven people, plus a Dutch rescue diver – caused severe commercial damage to Perini and has launched a €456m damages claim against the yacht’s owner, Revtom, and others.