Banca Monte dei Paschi di Siena S.p.A. announces that it has reached with Cerved Group S.p.A. a binding agreement regarding the sale of its non-performing loans platform.
The transaction involves the sale to Cerved Group S.p.A. of the vehicle that will manage existing non-securitized bad loans, in addition to a significant percentage of the bad loans that will be generated over the next ten years. The vehicle will take on all the employees that, on a voluntary basis, will decide to join the new entity. The same vehicle shall also have the right to manage 1/3 of the loans which will have been securitized within the wider transaction of capital increase and simultaneous deconsolidation of non-performing loans which was communicated to the market on October 25.
This transaction confirms the announcement made with the business plan on October 25, in terms of greater efficiency and a maximization of returns related to the management of non-performing loans.
The sale price amounts to EUR 105 million, to which an earn-out of up to EUR 66 million could be added, based on the achievement of economic results until 2024. The closing of the transaction, expected in the first quarter of 2017, is subject not only to approval by the supervisory authority, but also to the successful completion of the Bank’s transaction of capital increase and simultaneous deconsolidation of non-performing loans.
Mediobanca is acting as Financial Advisor to the Bank, whereas the law firm BonelliErede is acting as Legal Advisor.