Intesa Sanpaolo has signed an agreement with Fondazione Monte di Parma for the acquisition of a majority stake in the share capital of Banca Monte Parma.
Under the agreement the Intesa Sanpaolo Group shall acquire 51% of the Banca Monte Parma share capital from Fondazione Monte di Parma at the price of 159 million euro and subscribe, for an equal percentage, an increase in the Banca Monte Parma share capital of 75 million euro reserved to shareholders. This share capital increase is to be carried out through an issue of ordinary shares at the net book value per share.
Moreover, as provided for in the agreement, in the event that the other shareholders who entered into the existing shareholders' pact with Fondazione Monte di Parma (the "Parties", that collectively hold 28% of the Banca Monte Parma share capital) exercise the right conferred on them by said pact, the Intesa Sanpaolo Group undertakes to buy the Parties’ shares at the conditions set forth in the shareholders' pact - with a total maximum investment for the acquisition of 79% of the Banca Monte Parma share capital equal to around 230 million euro - and, as the case may be, to subscribe the corresponding portion of the aforementioned share capital increase. In addition, the Intesa Sanpaolo Group undertakes to subscribe any unopted portion of the share capital increase.
The finalisation of the transaction is conditional upon the authorisation of competent authorities.
As at 30 June 2010, Banca Monte Parma direct customer deposits amounted to about 2.3 billion euro euro, its indirect customer deposits to around 2.3 billion euro, customer loans to approximately 2.7 billion euro and net shareholders' equity was 156 million euro. Net income for the first half of 2010 was a negative 13 million euro.
Banca Monte Parma has a network of 67 branches in the provinces of Parma, Piacenza and Reggio Emilia, where the branch market share of the Intesa Sanpaolo Group will increase, following the completion of the transaction, from 6% to 19.6%, from 5.8% to 9.4% and from 4.8% to 6.9% respectively.
Once finalised, the transaction would have a maximum impact of around 7 basis points on the Group's Core Tier 1 ratio.