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Cariparma. Final rush for UTP

22 May, Finanza Report

Last offers for the Cariparma unlikely to pay for about 450 million euro put on the market with a little delay on the original plan.

The operation should have been concluded by the end of the summer, but the deadline for the binding offers was postponed to 8th June. The sale is included in the clean-up process launched after the acquisition of the three savings banks of Cesena, Rimini and San Miniato. Among the initiatives connected to the Puppy project for 6 billion euro launched by the holding company Credit Agricole, there is also the securitisation with Gacs for a value of 1 billion euro.

The reasons for the postponement have not been disclosed but it’s likely due to the great interest of the companies participating in the bid. There are at the moment three teams, mostly formed by American companies, competing for the acquisition of the unlikely to pay. One team is composed by the American Starwood and the Italian Prelios, a by Pimco and a third by Bain Capital.

The interest in the portfolio is related to the characteristics of the assets selected by Cariparma. In fact, most of the properties got offers from the bidding companies for over 40% and 50% of their value.

The operation launched by the bank from Emilia is aligned with the general trend of the impaired loans market. After having disposed of bad loans with massive sales, banks have now shifted the attention on UTP. There are significant UTP portfolios coming up on the market. Carige is intending to transfer 1.5 billion, Mps 4.5 billion, Unicredit 3 billion while Banco Bpm and Bper are evaluating similar operations.

After all, according to the consulting company PwC, the UTP volumes have reached a gross value of 94 billion euro, decreasing by 20% compared to the 117 billion of 2016, but still a significant amount nevertheless. Moreover, the UTP net value amounts to 66 billion euro against the 64 billion euro of NPL.

Source: Finanza Report

Translator: Cristina Ambrosi

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