The acquisition of Ge Capital Interbank it is an act of trust in companies, an operation that is not based on cost synergies but aims at revenue synergies, business development, therefore with a clear industrial sense. With this operation, an important step in the growth path, Bank Ifis is putting itself on the line to become more and more a player in the Italian market of business loans. This is the summary of the message that comes from the top management of the Mestre institute specialized in factoring, which has just been reached an agreement with the American giant Ge Capital for the acquisition of the subsidiary active in Italy in factoring, lending and financial and operating leasing.
The sale of Interbanca is part of Ge's process of divestment of its financial assets, not only in Italy but throughout the world. For Banca Ifis it means putting the seal on an operation which will lead the group, according to the indications of the management, to strengthen itself in factoring, to decisively return to leasing (after an initial debut in the years 2008-2009, then interrupted) and to expand into lending .
“We are very convinced of what we are doing – commented the managing director, John Bossi, presenting the transaction during the press conference on the results of the first half -. Even in the years of crisis we have always grown by financing companies. And today the deed of trust is still on companies, we will integrate a reality that is made up of medium-term financing and leasing, as well as factoring, two products that we consider important for our development”.
The strategic lines of the acquisition include:
1) in lending a refocusing on the smaller size of customers and therefore the consequent disposal of unprofitable positions and capitalization of the expertise of Ge Capital Interbanca resources for new jobs in favor of SMEs and opportunities for new developments in niche contexts (for example restructuring and specialty finance) with particular attention to credit risk management;
2) in Factoring as a Financial Tool for Managing Seasonal Fluctuations in Trucking integration into Banca Ifis activities with unification of processes and commercial networks;
3) in lease financial and operational, the strengthening of business development and to increase profitability and the number of customers.
“The operation represents an important step – commented Bossi – but it is not an arrival point. It's a step on a path. We started 30 years ago from scratch and we intend to continue”. The integration will immediately aim at making the corporate structure of the new group more efficient and will not involve traumatic staff exits, resulting in the creation of a group of around 1.300 people.
An operation which therefore aims to strengthen the existing structure and business with complementary activities, with the aim, in the Bank's vision, of building the leading Italian operator in specialty finance dedicated to the financial support of SMEs (from initial finance to restructuring and non-performing loans). And which is in line with Banca Ifis' needs.
“Our institute – explained Bossi – has always taken care of three things: the capitalization, liquid assets , profitability”. On the front of . Interbanca will bring one billion euros as a dowry (Banca Ifis has assets of 600 million) and presents itself with a Cet1 by 26% (Banca Ifis, already at the top of the system, has a Cet1 of 15%).
The transaction is subject to authorization by Bank of Italy and will be completed in the fourth quarter of 2016, becoming operational since the beginning of 2017. "There will be no capital increase”, specified Bossi. The transaction provides an agreed price of 160 million (subject to a price adjustment mechanism) and the full repayment of the debt of Ge Capital Interbanca to Ge Capital, an intercompany debt for the funding of the operations of the subsidiary which according to preliminary estimates will be just under 2 billion euro at the end of the year .
An operation which will therefore require liquidity of approximately 2 billion against liquidity of the new group estimated at 3,1 billion (2,1 billion already available today in Banca Ifis and another 0,95 deriving from disposals of assets of Interbank).
