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Mps is selling its assets. Divestitures for over 5 billion

06 October, Il Sole 24 Ore

Monte dei Paschi is currently carrying out some significant operations to complete all the planned transfers within the year according to the de-risking process the state-owned bank is undergoing.

In the next weeks, the bank will put for sale its real estate portfolio. Its value is assessed around 500 million. The advisor Duff & Phelps Reas will launch the procedure soon by sending the documents to the potential investors (for large part international investment funds). The portfolio includes the historical buildings in Via del Corso in Rome, Via Santa Margherita in Milan, as well as properties in Siena and Padua, formerly owned by Antonveneta. A small portion of the portfolio is represented by closed down bank branches.

The focus is, however, on the NPL and UTP portfolio. The advisor Pwc is expecting the non-binding offers by 12th October concerning the 2.4 billion NPL portfolio, also called project Merlino. The portfolio is divided into four parts, including also the consumer credit division Consum.it. Banca Ifis, Hoist, Cerberus, Mb Credit Solutions and Kruk are among the candidates.

Mps has also launched the Morgana project (with Kpmg as the advisor) concerning UTPs for 1.1 billion. The non-binding offers came last week. The portfolio includes several leasing holdings backed by real estate for about 700 million euro. Among the competitors, there are Bain Capital Credit and Cerberus.

Moreover, Mps is also finalising the Alpha operation concerning UTP for approximately 420 million. The project regards about 30 holdings, for the large part related to real estate, including those of the Rome developers Pulcini and the Una Hotels owned by Fusi. The operation is at the final stage. The offers came from Bain Capital Credit, Cerberus, Fortress and the team composed of Aurora Recovery Capital and the American investor Farallon. In addition to these operations, the bank guided by Morelli is also selling several single name impaired loans, namely holdings towards a single debtor.

The returns from the auction that will be launched on the IT platform are assessed around hundreds of millions. The advisor Pwc is awaiting the offer from Cedacri and of some other strategic groups.

Finally, Mps entered the agreement with the company owned by the funds managed by Wargus Pincus concerning the sale of Banca Monte Paschi Belgium. The bank’s subsidiary, assisted by Rothschild, has total assets for 1.5 billion, loans for 0.8 billion, a direct collection for one billion and equity for 110 million as per last December. The transfer is compliant with the commitments agreed with the European Commission regarding the 2017/2021 reorganisation plan. The impact on the Cet1 is not significant, and it has already been included in the reorganisation plan’s forecast. The next step will be selling the French assets.

Source: Il Sole 24 Ore

Translator: Cristina Ambrosi