In chess games, it is the most unexpected moves that create the greatest effect. And so, while Banca Generali seemed to be able to fall prey to Mediobanca, the institution led by Gian Maria Mossa Instead he surprised us this morning with an attacking move: he launched on Intermonte Partners Sim, independent investment bank listed on Euronext Growth Milan a voluntary public purchase offer for a maximum of 98,19 million euros on the shares.
The price of 3,04 euros incorporates a premium from 21,9% up to 24%
General Bank, controlled by Assicurazioni Generali, will pay 3,04 euros for each share (cum dividend) tendered in the offer, a price that incorporates a 21,9% bonus compared to the official price of the title Intermonte as of September 13, 2024 (2,49 euros), the last trading day before the date of the communication. Furthermore, the premium rises to 22,4% and 24% on average, respectively, of the last month and of the last three months. Based on prudential projections, Banca Generali expects to be able to generate a volume of synergies of revenue and cost such as to allow an estimated return on investment (ROI) higher than the bank's cost of capital.
At Piazza Affari, Banca Generali shares are trading at 40,48 euros this morning, up 0,50%. Intermonte shares are trading at 2,98 euros, up 19,68%.
52% of Intermonte shareholders have already confirmed their participation in the takeover bid
To ensure the success of the operation, Banca Generali has already signed agreements which provide for the adhesion to the OPA by shareholders who represent approximately 52% of the shares of the issuer in circulation (Alessandro Valeri, Guglielmo Paolo Manetti, Fabio Pigorini, Eugenio Anglani, Andrea Lago, Andrea Bottaro, Guido Pardini, Pier Andrea Randone, Dario Grillo, Alessandro Lorenzon, Walter Azzurro, Gian Luca Bolengo also in the name and on behalf of PER ASPERA Srl, Emiliano Brioschi, Maurizio Pinelli, Luca Cerutti, Renzo Cavatorta, Paolo Pascarelli, Roberto Tortini, Alberto Villa, Gianluca Giuliano Parenti and Stefano Alberti). Among the condizioni indicated in the offer is the achievement of a membership threshold such as to allow Banca Generali to hold an overall shareholding “at least equal to 90%” of Intermonte.
Complementarity in 5 points
The bank said in a statement that it "confides in being able to create value and achieve benefits for all the issuer's stakeholders and intends to pursue, with a view to substantial continuity with the current management, the increase in the issuer's potential".
In particular, the complementarity of the business model of Intermonte with that of General Bank would allow give value and create new areas of use for the activity of research in the Italian SMI market, where the company is a leader, to use its distinctive skills in the field of trading room with particular reference to the equity and ETF component, use and develop the company's distinctive skills in the field of derivatives desk, also with reference to the structuring of certificates with underlying Italian and European securities, finally significantly strengthen the offer towards entrepreneurs and SMEs, a fundamental segment for private banking, and the main driver of generation of new wealth in the country, increasingly subject to a generational transition issue and (v) further differentiate itself on the network market.
Intermonte: net result more than doubled in the first quarter
The board of directors of Intermonte "will promptly start the activities within its competence for the evaluations of the offer and the appropriateness of the consideration". In the meantime, just this morning, the brokerage firm has disclosed the data for the first half of 2024, which closed with a consolidated net result of 2,5 million euros, more than doubled compared to the first half of 2023 (1,1 million euros). The month of July also shows a further acceleration in revenues and profitability.
I total net revenue of the group stood at 19 million euros (+28,5% YoY), with the markets area (12,8 million euros) representing 67% of total revenues (of which Sales & Trading 58% and Global Markets 42%), the Investment Banking (IB) division 22% (4,1 million euros), and the Digital & Advisory Division (DD&A) 11% of total revenues (2,1 million euros). Intermonte confirmed a financial solidity among the highest in the financial sector, with a Total Capital Ratio of approximately 491,1%.
Thanks to a further strong contribution from the Investment Banking and Digital Divisions, the preliminary data as of 31 July 2024 show in the first seven months of 2024 revenues exceeding 25 million euros (+41% YoY).
“We are satisfied with the performance of this first part of 2024, which closes with a robust increase in revenues and profits, thanks to a transversal acceleration of all business areas – commented the CEO William Manetti – In a context of normalization of the reference markets, Intermonte has managed to further consolidate its positioning and significantly outperform the sector trends in the Markets Area, becoming among other things the first independent broker on the EGM market”.
