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Intesa Sanpaolo close to an agreement with Intrum

11 April, Blasting News

The negotiations are currently going on between Intesa Sanpaolo and the Swedish Lindorff Intrum Iustitia regarding the transfer of an NPL portfolio for 12 billion gross together with 50% of the collection platform might be close to a resolution. According to the rumours, the seller would be expecting to sell approximately at 25% of the price, whereas the buyer, after having considered several partnerships including that with the American fund CRC, has decided to carry out the operation alone. Goldman Sachs and Mediobanca are the advisors concerning the financing of the operation, while the definitive offer is expected by the end of the month.

The numbers of the operation

With a gross book value of approximately 12 billion euro and a significant secured component, the portfolio might have a transfer value comprised between 3 and 3.6 billion, corresponding to the 25%-35% set by the sellers.

Assuming a 60%-65% financial leverage, the Swedish company would pay around 1-1.2 billion euro. This might be an amount slightly higher than the immediate availability of the investor, without considering the amount to purchase half of the servicing platform, valued approximately 500 million. Putting together the prices for the portfolio and for the platform, the whole operation is valued about 1.5 billion.

M&A of the servicers as a success strategy

If accomplished, the operation would be only the last of a series of operations based on the acquisition of market shares and the placement in the Italian market through the acquisition of a collection platform which has already significant servicing mandates or which may grant good returns from future NPLs.

So far, the closest operation is the transfer of doBank, subsequently listed on the Milan Stock Exchange, by Unicredit to Fortress, along with the transfer by Unicredit of the FINO portfolio valued 16 billion to Pimco for the secured part and to Fortress for the unsecured part.

Source: Blasting News

Translator: Cristina Ambrosi