Crédit Agricole Cariparma has signed an agreement with the Interbank Deposit Guarantee Fund, Cassa di Risparmio di Cesena, Cassa di Risparmio di Rimini and Cassa di Risparmio di San Miniato to acquire 95,3% of the capital of the three banks. The total cost of the operation is 130 million euros. The acquisition will be concluded subject to the disposal, to be completed before the closing, of approximately 3 billion euros of gross impaired loans
Cariparma expresses its "satisfaction with the achievement of the agreement" and underlines that the operation falls within the scope of its strategic plan, contributing to strengthening the presence of the Crédit Agricole group in Italy, its second domestic market. The integration of the acquired banks "makes it possible to strengthen the customer base by more than 20%, exceeding the quota of 2 million customers, and contributes to its development in key regions at an economic level and with a strong industrial and agri-food vocation", continues the Note.
The acquisition is based on the assumption that at the closing date the three Banks present certain parameters including the average pro-forma CET1 ratio of the Banks at the closing date is equal to at least 10,7% and a gross NPE ratio equal to to 9%, thanks to the deconsolidation of non-performing loans and a significant portion of the unlikely-to-pay Banks, before their sale to CA Cariparma.
The deconsolidation will take place through one of the following operations: securitization of impaired loans (bad loans and unlikely to pay) amounting to 2,74 billion gross, carried out thanks to the intervention of the Atlante II Fund, or direct sale of impaired loans (bad loans and unlikely to pay) amounting to 286 million gross, achieved thanks to the intervention of Algebris. In the negotiation, Equita assisted the Casse di Rimini and San Miniato on the financial aspects.
