Unipol launches a 2.5 billion capital increase for the MPS subsidiaries, with a discount of 18.75 per cent
The board of directors has given the go-ahead for the recapitalisation. The majority member co-operatives have already committed to participating.
Unipol’s board of directors has given the go-ahead for a capital increase of up to 2.5 billion, the proceeds of which will be used to acquire – as part of the agreements signed with Intesa Sanpaolo – 635 MPS branches. The transaction, which has already been approved by the majority cooperative shareholders, who are ready to participate, will take place at a discount of 18.75 per cent to the TERP, a low level compared with the average for recapitalisations on the Milan Stock Exchange. However, this comes as no surprise given the reaction of Unipol’s share price, which, following the announcement of the reorganisation in early June, began an upward trend, despite the prospect – already announced at the time – of a recapitalisation.
The launch of the rights issue – as stated in a press release – is subject to Consob’s approval of the prospectus relating to the issue and its publication. The board of directors has set the price at which the new shares will be offered at €20.56, of which €4.69 is to be allocated to share capital and the remainder to share premium, with a maximum of 121,582,320 new shares to be issued, to be offered to shareholders on a rights basis at a ratio of 10 new shares for every 59 held. The subscription price incorporates a discount of 18.75 per cent on the theoretical ex-rights price of Unipol shares.
The group has also signed the underwriting agreement relating to the capital increase with J.P. Morgan acting as Lead Global Coordinator, BNP Paribas acting as Joint Global Coordinator, and Deutsche Bank, Morgan Stanley and Equita SIM acting as Joint Bookrunners. In particular, ‘the underwriters have undertaken, severally and without joint and several liability, in accordance with the terms and conditions set out therein, to subscribe for and pay up any new shares remaining unsubscribed at the close of the Public Offering, up to a maximum amount corresponding to the total value of the capital increase, net of the value of the subscription commitments”.
