Riva Pushes for Official Recognition of Trade Fair Leadership

The longstanding and unyielding Riva ambition to see its provincial leadership in the trade fairs and conference sector officially acknowledged is finally bearing tangible fruit, surpassing the usual vague promises made by Trentino governments.

Increase in Participation and Future Perspectives

This «something» is a significant increase (from 22 to 48 percent) in the participation of Tecnofin in Lido di Riva. The operation — demonstrating how Provincia has decided to fully believe in the potential of the Rivafornia company owner of Palacongressi and Palafiere — will materialize within a few weeks.

Moreover, as early as the next city council meeting, Nino Torboli will present a resolution to pave the way for strengthening Technofin‘s presence within Lido spa. Essentially, the council is called to act on three fronts.

Participation Options and Strategies

First: establish that the municipal shareholding in Lido spa (currently 77 percent) can fall below 60 percent, while remaining majority (and it will effectively be 53%).

Second: waive the right of pre-emption in the upcoming capital increase of Lido. This is the core of the operation: Technofin, in fact, will increase its stake in Lido spa simply by converting a 10 billion euro bond loan made last year to the same Lido into shares.

Third: since the capital increase is issued at the nominal value of the shares (and not at the higher patrimonial value), the city council will authorize the Lido board of directors to sign an agreement with Technofin so that the depreciation of municipal shares due to the reduction in participation (estimated at about 136 million euros) can be recovered when Technofin reintroduces the shares onto the market. In that case, the municipality would have the right to repurchase them at the original nominal value.

Implications and Benefits of the Operation

All in all, it is an operation with all necessary precautions that the Torboli assessor has devised. Politically significant and advantageous for the liquidity of Lido, which, no longer needing to repay loan installments to Technofin, will save about half a billion euros in interest annually in the future.

«And now we are working — says the satisfied assessor — to bring a pool of banks as shareholders. Lido is a healthy, attractive company, worth investing in».