Mps approves the capital increase and sets the bar at 2,5 billion against the 2,1 requested by the ECB. The BoD of the Sienese bank, which met in the afternoon, approved the measures to deal with the capital deficit that emerged with the Eurotowe stress tests (Mps did not pass the severe test scenario) which will be submitted by 10 November to the BCE
The recapitalisation, the final size of which will be determined based on the approval of the Capital Plan by the competent authorities, will be carried out in 2015 and is already assisted by a pre-guarantee agreement with a pool of banks including UBS, Mediobanca, Goldman Sachs .
The bank's program also includes full repayment of the Monti bonds ahead of the 2017 expiry set out in the restructuring plan agreed with the EU.
Additional non-dilutive actions are also envisaged for shareholders for an amount of 220 million euro which consist of the sale of non-core equity investments and assets of the highly capital-absorbing proprietary portfolio, with no significant impact on the Bank's future profitability.
MPS, reads the statement issued at the end of the board meeting, also asked the ECB for the "mitigation of the deficit" of capital for 390 million euros, i.e. the "positive difference" between the operating profits estimated for 2014 and the same values estimated in adverse scenario of the ECB stress test. Now the word passes to the shareholders: the capital increase will have to be approved by an extraordinary meeting.
Mps also announced that it has received the 10 billion offer from the Hong Kong Nit fund but which due to its generic nature is invaluable, in addition to the fact that if addressed, as it seems, to the shareholders to take control of the Sienese bank, it should be accompanied by the offer of a takeover bid.
