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CONSOLIDATED FINANCIAL REPORT | EXPLANATORY NOTES
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Acquisition of majority stake in Oman Cables Industry (SAOG)
On 16 December 2015, Prysmian Group signed an agreement to increase its interest in Oman Cables
Industry (SAOG) to approximately 51%, thereby acquiring a majority stake and control of the company.
Prysmian Group, which already owned 34.78% of the company, purchased an additional interest of
approximately 16% for consideration of around Euro 110 million.
With turnover of Euro 664 million in 2015 and about 800 employees in its two production facilities, Oman
Cables Industry is a top cable manufacturer in the Gulf region and is listed on the Muscat Stock Exchange.
Further information can be found in Section E. Business combinations.
Finance Activities
Bond issuance
On 10 March 2015, the Board of Directors of Prysmian S.p.A. authorised management to proceed,
depending on prevailing market conditions and in any case by 30 June 2016, with the issuance and private
or public placement of bonds in one or more tranches. These bonds were intended for sale to institutional
investors only.
Consequently, on 30 March 2015 Prysmian S.p.A. completed the placement with institutional investors of an
unrated bond, on the Eurobond market, for a total nominal value of Euro 750 million. The bond, with an issue
price of Euro 99.002, has a 7-year maturity and will pay a fixed annual coupon of 2.50%.
The bond settlement date was 9 April 2015. The bond has been admitted to the Luxembourg Stock
Exchange and is traded on the related regulated market.
Prysmian has used the bond issue proceeds to redeem the Euro 400 million Eurobond that matured on 9
April 2015 and to repay early the Term Loan Facility 2011 for Euro 400 million.
Other significant events
Antitrust investigation
On 2 April 2014, the European Commission concluded the investigations started in January 2009 by
adopting a decision under which it found that, between 18 February 1999 and 28 January 2009, the world's
largest cable producers, including Prysmian Cavi e Sistemi S.r.l., adopted anti-competitive practices in the
European market for high voltage submarine and underground power cables.
The European Commission held Prysmian Cavi e Sistemi S.r.l. jointly liable with Pirelli & C. S.p.A. for the
alleged infringement in the period 18 February 1999 - 28 July 2005, sentencing them to pay a fine of Euro
67.3 million, and it held Prysmian Cavi e Sistemi S.r.l. jointly liable with Prysmian S.p.A. and The Goldman
Sachs Group Inc. for the alleged infringement in the period 29 July 2005 - 28 January 2009, sentencing them
to pay a fine of Euro 37.3 million. Prysmian has appealed against this decision to the General Court of the
European Union and has submitted an application to intervene in the appeals respectively lodged by Pirelli &
C. S.p.A. and The Goldman Sachs Group Inc. against the same decision. Both Pirelli & C. S.p.A. and The
Goldman Sachs Group Inc. have in turn submitted applications to intervene in the appeal brought by
Prysmian against the European Commission's decision. The applications to intervene presented by