The board of directors ofillimity Bank has given the green light to the offer public purchase and exchange launched by Bank Ifis, which will start on Monday 19 May. The councillors have judgedor "appropriate" the price from a financial point of view, but they highlighted some critical issues that make it difficult, according to the bank founded by Corrado Passera, for the shareholders to make an informed evaluation.
Banca Ifis' offer on illimity
The Venetian bank has put on the table 298 million in a mixed cash and share offer: for each illimity share that will join, 0,1 newly issued shares and a cash component, equal to 1,414 euros, will be proposed, which will be adjusted to 1,506 euros following the detachment, on 19 May 2025, of the coupon relating to the balance of the dividend for the 2024 financial year that will be distributed by Banca Ifis. The takeover bid is currently at premium of almost 2% compared to the market price of illimity.
Il membership periodand will begin on May 19, 2025 and end on June 27, 2025 (subject to extensions) and, therefore, will be equal to 30 trading days.
The offer has already been positively evaluated by Sella Holding, which owns 10% of Illimity and from Andrew Pignataro which holds 9,4% of the company.
iIlimity: “financially appropriate” offer
The board of directors of illimity has judged the offer is “congruent” from a financial point of view launched by Banca Ifis and taking into account "the Fairness Opinions of independent financial advisors Jefferies and Wepartner", approved the issuer's press release.
However, it is the councilors who have Uncertainties detected “connected to the information gaps, the expected synergies, the different industrial models of the issuer and the offeror, the risks of carrying out the transaction and the level of capitalisation of the new banking group”, reads a note.
The Board of Directors deemed it necessary to underline these elements because "even in light of the results of the analyses carried out exclusively from a financial point of view, the risks and uncertainties highlighted make difficult to make an assessment of the offer, as they pertain to aspects that are essential for a complete appreciation of the offer itself”, continues illimity.
In particular, the points of critical issues highlighted are thelack of an industrial plan stand alone of the offeror and details on the expected effects of the operation, the lack of comprehensive information in relation to the expected synergies, the uncertainties on the ICT strategies of the offerer, technological developments and the expected synergies and uncertainty about employment implications potentially arising from the takeover bid.
Banca Ifis launches Ifis sport
Meanwhile, yesterday Banca Ifis announced the creation of a new business unit dedicated to the development of financial solutions for companies operating in the Italian sports sector. The project, which takes the name of Ifis sports, “is embodied in a new division within the Corporate and Commercial Banking area designed to support businesses, whether professional or amateur, in meeting their financial and commercial growth needs,” the bank explains in a note.