Italy's High-Speed Spin-Off: FS Gears Up for Investor Attraction

Italy's state-owned Ferrovie dello Stato plans to spin off its high-speed network to form a new company, aiming for eventual investor participation. While ensuring full control, FS seeks to reduce Italy's public debt. Future steps involve adopting a new financing model to boost investor appeal and increase annual revenue.

Italy's state railway, Ferrovie dello Stato (FS), is preparing to spin off its high-speed network into a new company. This move, announced by FS Chief Executive Stefano Donnarumma, aligns with Prime Minister Giorgia Meloni's strategy to reduce Italy's substantial public debt by selling state assets.

Donnarumma emphasized that the FS group would maintain control over the new company, even while seeking investors to help finance it. As part of this initiative, FS plans to adopt a new financing model, which aims to attract private investors before considering a sell-off or public listing.

The high-speed venture, valued at 8 billion euros, reflects Meloni's broader ambition to generate 20 billion euros through asset sales. FS anticipates increasing annual revenue significantly by 2029, underpinning this strategy with considerable investment into Italy's rail infrastructure.