Mps and the capital increase: the recapitalization of the Monte di Stato is done, or almost. The Sienese bank has announced the results of the 2.5 billion euro transaction which, which started on Monday 17 October, ended yesterday, Monday 31 October.
With the call to arms of the Mef major shareholder di Monte dei Paschi di Siena, which involved banking foundations and pension funds, and with that maxi commission of 125 million paid to the banks of the guarantee consortium, “approximately 93% of the Capital Increase has already been subscribed or is subject to commitments binding by institutional investors prior to the start of the auction of the unopted ” (reads the press release). The sums raised with the capital increase will be used above all to finance the voluntary exit presented by thousands of bank employees, many more than estimated: compared to the 3,500 employees previously estimated, the employees of Monte who want to give themselves escape from the Sienese bank are 4.125, of which 4,005 for the MPS group and 120 as extra group secondments.
Mps: Giorgetti’s trust, Messina’s comment (Intesa)
Yesterday a comment on Mps, on the occasion of the World Savings Day organized by Acre, had been released by the new Minister of Economy and Finance of the Meloni government, Giancarlo Giorgetti:
“The current government will work to manage in an orderly manner the disposal of the shareholding held by the State, in compliance with the commitments made with the EU Commission, leaving the market with a strong banking entity capable of operating in a diversified and articulated economy, even geographically. , like the Italian one “. The taxpayers hope so much, that for years they have continued to act as a crutch at the Monte di Stato.
He also commented on the Monte dossier the managing director of Intesa SanPaolo, Carlo Messina.
“I believe that the capital increase of Mps is a very important step for the definitive stabilization of the Italian banking system, The Mef and the director general of the ministry Alessandro Rivera are doing an excellent job “commented the CEO of Intesa, adding that, as is happening to other banks, “Mps will take advantage of the rise in interest rates, which will return what has been removed from bank balance sheets “ in the last few years in which the ECB has launched the zero and even below zero interest rate policy, with negative rates.
Mps: 93% capital increase subscribed or subject to commitments
Specifically, 74% of the capital increase was subscribed, a factor that allowed Mps to secure new fresh vehicles for a value of 1.847.316.152 euro: of these, approximately 1.6 billion were paid by the largest shareholder Treasury-Mef (with its 64% stake). The subscription had as its object 923,658,076 newly issued shares, or the new shares issued by Monte. In addition to the subscription of the new shares, they were taken “Sub-underwriting commitments by third-party investors for 19% of the Capital Increase – relating to the shares deriving from the rights that will possibly remain unexercised at the end of the auction – corresponding to a maximum amount of Euro 475 million“.
READ THE NOTE Mps announces the outcome of the capital increase: subscriptions and commitments for 93%, unexercised auction starts today
The percentage of 93% subject to subscriptions and commitments, Mps specified in the press release, may also increase: today the auction of the unopted will start, or option rights that have not been exercised. They were not actually exercised “2,615,034 option rights (the ‘unopted rights’) which give the right to subscribe for a total of no. 326.007.572 New Shares, for a total value of Euro 652.015.144, equal to approximately 26% of the Capital Increase “.
It is therefore about 652 million euros that the market has not subscribed, but which will nevertheless be covered with sub-underwriting commitments by third-party investors for a maximum amount of 475 million euros. “This figure – the Monte dei Paschi press release points out – does not take into account the sub-underwriting commitments by third party investors for a total amount of Euro 475 million (of which Euro 20 million assumed today – yesterday for the reader), corresponding to 19% of the Capital Increase or approximately 73% of the Inopted Rights, on the New Shares that should remain unexercised at the end of the Inoptate Auction “.
Among these investors there are the French insurance company and partner of Mps Axa, holders of the bank’s subordinated bonds which include funds such as Pimco, Melqart and BlueBay, and several fItalian banking transactions, who said yes to the Treasury’s requests to participate in the increase. Thus, about 177 million euros are missinga sum guaranteed by the Algebris fund by Davide Serra than from the eight banks of the underwriting syndicate.
Mps capital increase: really a market operation?
The call to arms by the Treasury is evident, and also highlighted in the titles of some foreign articles dedicated to the Sienese bank, such as the one signed by Reuters. That is to say: “Monte dei Paschi’s cash call 93% covered so far despite low shareholder take-up”, that is to say, “Monte dei Paschi capital increase covered to 93% despite the low shareholder participation”. There was no lack of controversy over the nature of this capital increase as a market operation. In recent days, there has also been a shift from London, with a fund that has asked the ECB to block what has been defined as a illegal operation.
The request was presented by the law firm RPC, representing the global investor, in an ad hoc letter. Reason for the appeal to stop the recapitalization, the suspicion that Mps was indirectly purchasing its own shares.
Certainly, the market reaction to the capital increase has never been so positive, far from it the cancellation of option rights, which were KOed by sales.
LAWS
Mps, the banks of the Monte have said yes. The capital increase can be done: it will be the seventh in 15 years
Apple of contention with the market in general, the maxi commission of $ 125 million that Mps paid to the banks of the guarantee consortium and to the Algebris fund: a commission that would have aroused suspicion in Brussels, as had been announced the day before by the Financial Times, which had revealed that the maxi commissions paid to the guarantee banks and the fund Albegris had ended up on the radar of the European Union, who supervise compliance with the state aid rules.
An investor consulted by the British newspaper had said it plainly: “Taxpayers are the only ones who risk losing everything”.
Then there was another detail that put the operation at risk:
the fact that, on the stock market, the Mps stock had fallen below the 2 euro threshold and therefore, for any potential investor, it was definitely better to buy the title in Piazza Affari. Controversy and criticism were finally mounted with the news concerning the participation in the recapitalization by the banking foundations, after the painful experience of the Atlante Fund, with the same banks Intesa SanPaolo and UniCredit who had paid not a little the contributions paid to the Atlante fund for the rescue of the Venetian banks and to put the Italian banking system back on track.
Mps: unexercised rights auction starts today. What you need to know
Returning to what happens now for Monte dei Paschi di Siena, in the note in which it illustrated the results of the capital increase during the option period, the bank specified, in relation the auction of unexercised rights that will start today, that “Mediobanca – Banca di Credito Finanziario SpA in the sessions of 1 November 2022 and 2 November 2022, will coordinate the offer of the Inopted Rights that will be offered on the Stock Exchange, on the Euronext Milan regulated market, with the ISIN code IT0005509010, pursuant to art . 2441, paragraph 3, of the Civil Code (the Auction of the Inoptato ‘). Inopted Rights they may be used for the subscription of the New Shares, at the price of Euro 2.00 per New Share, on the basis of a ratio of 374 (three hundred and seventy-four) New Shares for every 3 (three) Unsolicited Rights held. The exercise of the Unused Rights and, consequently, the subscription of the New Shares, must be carried out through the authorized intermediaries adhering to the centralized management system of Monte Titoli SpA, under penalty of forfeiture, no later than 2:00 pm on November 3, 2022 ″.
We will have to wait a few more days to know the definitive results of the institution’s capital increase.
Mps has announced that “The communication on the final outcome of the Capital Increase will be provided to the public by MPS by means of a specific press release by the market opening of November 4, 2022 ″.
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