Unipol: green light for the 2.5 billion capital increase for the MPS deal
Shareholders have approved the funding to acquire part of the Siena network should Intesa Sanpaolo’s bid be successful
Key points
Unipol’s shareholders’ meeting has approved a capital increase of up to €2.5 billion to facilitate the acquisition of part of MPS’s network from Intesa Sanpaolo, should Ca’ de Sass’s takeover bid for the Siena-based bank go ahead.
Specifically, the shareholders of the group chaired by Carlo Cimbri approved the proposal to grant the board of directors the power – to be exercised by 31 December 2027 – to increase, on one or more occasions, in separate tranches and against payment, the share capital by a maximum amount of 2.5 billion euros. The resolution will take effect, explains a statement from the group, subject to approval by IVASS.
The operation
On 8 June, Intesa Sanpaolo announced a voluntary public takeover and exchange offer for all the shares in Monte dei Paschi di Siena: a €30.6 billion deal that would create one of Europe’s leading banking groups, with over 27 million customers and approximately €2,000 billion in customer financial assets by 2029.
In parallel with the offer, Intesa Sanpaolo has reached a binding agreement with Unipol Assicurazioni for the sale of an autonomous banking entity that would include around 635 MPS branches, the associated historic brand and the majority of the central functions required to operate as an independent bank. The consideration payable to Intesa Sanpaolo for the sale is estimated at between 3 and 3.5 billion.
Intesa Sanpaolo would retain around 625 MPS branches and the whole of Mediobanca, keeping the brand and retaining around 80 per cent of the combined net profit of MPS and Mediobanca.
