Intesa Sanpaolo Makes EUR4.86 Billion Offer to Buy UBI Banca
February 17 2020 - 10:29PM
Dow Jones News
By P.R. Venkat
Intesa Sanpaolo S.p.A. has made an voluntary offer to acquire
Unione di Banche Italiane S.p.A., or UBI Banca, in a deal valued at
4.86 billion euros ($5.27 billion).
Under the proposed offer, UBI Banca shareholders will get 17
newly issued shares of Intesa Sanpaolo for every 10 UBI Banca
shares held, Intesa said in a statement.
The share offer values UBI stock at EUR4.254 apiece. UBI Banca
shares closed 5.5% higher at EUR3.49 on Monday, while Intesa shares
closed 1.3% higher at EUR2.54.
"The prospect of the financial and banking sector in the coming
years is characterized by a consolidation in which the main
operators will be champions both in Europe and outside Europe,"
Intesa said in a statement late Monday, adding that the combined
entity could generate consolidated profits higher than EUR6 billion
starting in 2022.
Intesa said the finalization of the transaction is expected to
take place by the end of this year and is subject to the receipt of
regulatory authorizations.
Once the deal is completed, Intesa plans to delist UBI Banca,
the fourth-largest banking group in Italy by number of branches,
with a market share of about 7%.
"The combined group will have over EUR1,100 billion in customer
financial assets with around three million UBI Banca customers, who
hold around EUR200 billion in financial assets," according to the
statement.
Intesa Sanpaolo is one of the top banking groups in Europe with
a market capitalization of EUR44.43 billion. The Italian bank
provides retail, corporate and wealth management services with a
network of about 3,800 branches. It has a market share of 12% in
most Italian regions, according to its website.
Write to P.R. Venkat at venkat.pr@wsj.com
(END) Dow Jones Newswires
February 17, 2020 22:14 ET (03:14 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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