An operation, announces Messina, which “leads us to being the best European bank”. With these words the CEO of Intesa Sanpaolo collected the turning point that came after six months of negotiations. Intrum, a Swedish credit management company, has put up €3,6 billion to buy 10,8 billion Npl from Intesa Sanpaolo and 51% of the platform to manage them, a new operator who would become the leader in Italian debt collection. The sale therefore takes place at 28,7% of the nominal value, well above the averages recorded in the past by the market. The Board of Directors of the Bank met this morning and gave the green light to the operation, which will bring Intesa a capital gain of 400 million after taxes. The closing is expected for next November. Following this news, the stock on the stock exchange di Intesa gains 1,7%, to 3,129 euros.
In detail, the agreement provides for two operations:
- The establishment of a leading operator in the servicing of NPLs in the Italian market, with the integration of the Italian platforms of Intesa Sanpaolo and Intrum, which would have the following characteristics:
- approximately 40 billion euros in servicing;
- 51% of the new platform held by Intrum and 49% by Intesa Sanpaolo;
- a ten-year contract for the servicing of Intesa Sanpaolo non-performing loans at market conditions;
- important commercial development plans for the new platform in the Italian market;
- approximately one thousand employees involved, including approximately 600 people from the Intesa Sanpaolo Group, for whom – in the event that the transaction is carried out – discussions with the trade union organizations are envisaged, also so that the partnership further enhances the human resources involved.
- The sale and securitization of a bad loan portfolio of the Intesa Sanpaolo group, equal to €10,8 billion before value adjustments (one of the most important transactions carried out on the Italian market) at a price in line with the book value already determined for the part of the Group's non-performing loans with transferable characteristics, considering the sales scenario.
In order to achieve the full accounting and regulatory deconsolidation of the portfolio at the closing date (expected in November 2018) the financial structure of the securitization vehicle would be as follows:- Senior Tranche corresponding to 60% of the portfolio price, which would be subscribed by a group of leading banks;
- Junior and Mezzanine Tranches equal to the remaining 40% of the portfolio price, which would be subscribed for 51% by a vehicle - owned by Intrum and by one or more co-investors, but which would still act as a single investor for governance purposes - and for the remaining 49% by Intesa Sanpaolo.
The offer envisages a valuation of the Intesa Sanpaolo servicing platform of approximately 0,5 billion euro and of the non-performing loans subject to securitization of approximately 3,1 billion euro, which would translate into a capital gain of approximately 400 million euros after tax in the consolidated income statement of Intesa Sanpaolo.
In the afternoon the CEO of Intesa Sanpaolo Carlo Messina commented on the details of the plan: by 2021 the bank estimates a reduction on the Npl front "equal to 26 billion euros, in one fell swoop we have reduced them by 11 billion, there are only 15 left", explains the CEO. “For the Italian banking system – continues Messina – this operation with Intrum stabilizes the conditions of the Npl market in Italy”.
The agreement "is important in our country in a phase like this, in which we find ourselves in a moment of political uncertainty, demonstrating that the fundamentals of our country are very solid", concluded the manager.
(Update at 16.13 on 17 April)
