Ps offers as an option to its shareholders 10 new stocks for each share owned and the subscription price is equal to 1,17 € per share, with one discount of approximately 38,9% compared to the theoretical ex-rights price calculated on the basis of yesterday's official stock market closing price. This was decided yesterday by the Bank's Board of Directors, which established the terms of the imminent capital increase of three billion euros (to be precise 2.993.160.608,10).
The operation will start the 25 May and MPS will use 1,071 billion of the proceeds to repay the remaining portion of the Mount bonds, the public loan which in 2012 avoided the bankruptcy of Monte.
The institution will issue a maximum of 2.558.256.930 new ordinary shares, "without indication of par value, having the same characteristics as the outstanding BMPS shares, including regular entitlement, to be offered as an option to holders of BMPS shares at the subscription price of Euro 1,17 for each new BMPS share, from be charged entirely to the capital, in the ratio of 10 (ten) newly issued BMPS shares for each BMPS share held”, reads the Bank's note.
The option rights valid for the subscription of newly issued BMPS shares "will be exercisable under penalty of forfeiture from 25 May 2015 to 12 June 2015, inclusive - the text continues -. The option rights will also be tradable on the Stock Exchange from 25 May 2015 to 8 June 2015, inclusive". The Prospectus relating to the Offer will be made available in the manner and within the terms of the law at the registered office of BMPS in Siena, Piazza Salimbeni n. 3 as well as on the Bank's website, www.mps.it.
Axa, with a strong 3,7% stake, confirmed its willingness to participate in the increase. Davide Serra of Algebris, on the other hand, clarified that he will not subscribe to any unopted options.
IERI (Yesterday) Consob had given the green light to the prospectus of the increase. Last week also the European Central Bank had approved the recapitalization of Monte. However, the Eurotower had specified that the operation alone "does not solve the Bank's structural problems" and that two other points of the Capital plan drafted in November remain to be put into practice: the reduction of non-performing loans and the merger with a partner.
Mps also subscribed a guarantee agreement relating to the increase. UBS will act as Global Coordinator and Joint Bookrunner, while Citigroup Global Markets, Goldman Sachs International and Mediobanca will act as Co-Global Coordinator and Joint Bookrunner. Barclays, Commerzbank, Deutsche Bank, London Branch, Merrill Lynch International and Société Générale will act as Joint Bookrunners.
Furthermore, as part of the underwriting consortium Banca Imi, Banco Santander, Credit Suisse Securities (Europe) and Unicredit Bank AG, Milan Branch will play the role of Co-Bookrunner and Banca Akros, Banca Profilo, Banca Popolare di Vicenza, Bbva, Equita Sim, Ing Bank, Jefferies International and Stifel Nicolaus Europe (trading as Keefe, Bruyette & Woods) will act as Co-Lead Managers (jointly with the Global Coordinator, Co-Global Coordinators, Joint Bookrunners and Co-Bookrunners, the Guarantors).
The guarantors have undertaken to ensure the subscription of any ordinary shares that may have remained unexercised as a result of the offer on the Stock Exchange of the unexercised rights, up to an amount equal to 3 billion euro. Furthermore, the AXA Group and the AXA Mutuelles have "irrevocably" undertaken to subscribe the shares to which they are entitled, as holders of 9.515.292 MPS shares, deriving from the rights issue capital increase.
IERI (Yesterday) the stock on the stock exchange di Monte dei Paschi lost 3%, to 9,38 euros.
UPDATE 10.05
This morning, MPS shares are on a roller coaster: after opening the Stock Exchange session with a drop of 4,96%, which had led to the temporary suspension of trading, the stock returned to trading and began to recover up to + 5%. At that point, the suspension in the volatility auction was triggered again.
