MILANO – Unicredit breaks the delay on Monte dei Paschi and with a note released on Thursday evening announces the start of a negotiation with the Ministry of Economy, majority shareholder of the Sienese bank after the rescue, “for a potential operation concerning the commercial activities of Mps, through the definition of a selected perimeter and adequate risk mitigation measures “. The bank, explains a note, will initiate “exclusive discussions with the Treasury to verify the feasibility of the operation”.
The institute led by Andrea Orcel, a banker who until now seemed cold about the acquisition, explains that “a potential transaction would allow the Group to accelerate its organic growth plans and facilitate the achievement of sustainable returns above the cost of capital”. In the press release, Unicredit notes that “Mps could contribute, subject to the definition of the perimeter of the transaction, approximately 3.9 million customers, 80 billion in customer loans, 87 billion in customer deposits, 62 billion in assets under management and 42 billions of assets under administration. The transaction would allow the Group to strengthen its competitive positioning in Italy and in particular in the Center-North, where 77% of MPS branches are located, contributing among other things to an increase in market share. in Tuscany by 17 percentage points, in Lombardy and Emilia Romagna by 4 percentage points and in Veneto by 8 percentage points “.
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Unicredit also figures “a significant increase in prospective profitability, while preserving the capital position and improving the asset quality and risk profile of the Group on a pro forma basis. Any potential transaction would take place within the existing focus by of the Group on the release of the internal value that remains and will remain a priority “.
At the basis of the feasibility of the operation, Unicredit details some precise assumptions, agreed with the Treasury:
• its neutrality with respect to the Group’s capital position on a pro forma basis;
• a significant increase in earnings per share after considering the possible net synergies of the transaction and in any case the maintenance of current levels of earnings per share even before taking into account the possible synergies at 2023;
• the exclusion of extraordinary disputes not relating to ordinary banking activities and all related legal risks, current or potential;
• the exclusion of impaired loans and adequate coverage of any further credit risks that are identified also following the due diligence through methods to be defined;
• the agreement on personnel management based on the compendium inherent in the exercise of commercial activities, in order to ensure an easy, rapid and effective integration of the business into the Group.
The bank of Piazza Gae Aulenti further details that the possible acquisition of parts of Monte dei Paschi will receive the green light only with the “positive outcome of the verification of the existence of the essential conditions of the operation, of the legal, equity, fiscal and accounting due diligence and industrial relations, and discussions with the MEF and MPS aimed at reaching a more precise definition of the structure, terms and perimeter of the transaction, as well as the subsequent definition of the related binding agreements. Following today’s announcement, UniCredit will agree with MPS to access a dedicated virtual data room for carrying out the due diligence activity “.
The chairman Pier Carlo Padoan, concludes the Unicredit note, “despite the absence of any conflict of interest and in full independence of judgment, by reason of his previous post as Minister of Economy and Finance, decided to abstain from the resolution of the Board of Directors “.
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