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PRYSMIAN GROUP | DIRECTORS’ REPORT
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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. 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.
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
Prysmian, Pirelli & C. S.p.A. and The Goldman Sachs Group Inc. have all been accepted by the General
Court of the European Union. Prysmian has not incurred any financial outlay as a result of this decision
having elected, pending the outcome of the appeals, to provide bank guarantees as security against
payment of 50% of the fine imposed by the European Commission (amounting to approximately Euro 52
million) for the alleged infringement in both periods. As far as Prysmian is aware, Pirelli & C. S.p.A. has also
provided the European Commission with a bank guarantee for 50% of the value of the fine imposed for the
alleged infringement in the period 18 February 1999 - 28 July 2005. Pirelli & C. S.p.A. has also brought a
civil action against Prysmian Cavi e Sistemi S.r.l. in the Milan Courts, in which it demands to be held
harmless for all claims made by the European Commission in implementation of its decision and for any
expenses related to such implementation. Prysmian Cavi e Sistemi S.r.l. started legal proceedings in
February 2015, requesting that the claims brought by Pirelli & C. S.p.A. be rejected in full and that it should
be Pirelli & C. S.p.A. which holds harmless Prysmian Cavi e Sistemi S.r.l., with reference to the alleged
infringement in the period 18 February 1999 - 28 July 2005, for all claims made by the European
Commission in implementation of its decision and for any expenses related to such implementation. The
proceedings have since been stayed by order of the court concerned in April 2015, pending the outcome of