UniCredit: public exchange offer launched for BancoBPM
(CercleFinance.com) - Italian banking giant UniCredit announced on Monday the launch of a public exchange offer (PEO) for its compatriot BancoBPM, in a transaction worth about E10.
1bn.
UniCredit explains that the transaction is aimed at strengthening its competitive position in Italy, which it considers to be one of its main 'strategic' markets.
In detail, the group intends to offer 0.175 new UniCredit shares in exchange for each BancoBPM share held, implying a unit price of E6.657, a premium of around 0.5% on last Friday's closing price.
Over a six-month horizon, the premium offered to BPM shareholders is around 15%.
Recalling its flattering track record in terms of integration, UniCredit says it expects to complete its takeover bid by June 2025, and then to finalize the combination within 12 months of closing.
The Milan-based institution estimates the synergies associated with the operation at around 900 million euros, an amount it expects to generate mainly in the first two years following the merger.
In terms of profitability, UniCredit says it expects an accretive effect of between 5% and 10% over two years, with a return on investment (ROI) of at least 15%, without calling into question its dividend payment prospects.
On the Milan Stock Exchange, UniCredit shares were down by more than 3% on Monday morning in the wake of these announcements, while BancoBPM shares were up by 4.5%.
In Frankfurt, Commerzbank - which was considered a potential target for a takeover by UniCredit - was down by almost 5% after the announcement.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
1bn.
UniCredit explains that the transaction is aimed at strengthening its competitive position in Italy, which it considers to be one of its main 'strategic' markets.
In detail, the group intends to offer 0.175 new UniCredit shares in exchange for each BancoBPM share held, implying a unit price of E6.657, a premium of around 0.5% on last Friday's closing price.
Over a six-month horizon, the premium offered to BPM shareholders is around 15%.
Recalling its flattering track record in terms of integration, UniCredit says it expects to complete its takeover bid by June 2025, and then to finalize the combination within 12 months of closing.
The Milan-based institution estimates the synergies associated with the operation at around 900 million euros, an amount it expects to generate mainly in the first two years following the merger.
In terms of profitability, UniCredit says it expects an accretive effect of between 5% and 10% over two years, with a return on investment (ROI) of at least 15%, without calling into question its dividend payment prospects.
On the Milan Stock Exchange, UniCredit shares were down by more than 3% on Monday morning in the wake of these announcements, while BancoBPM shares were up by 4.5%.
In Frankfurt, Commerzbank - which was considered a potential target for a takeover by UniCredit - was down by almost 5% after the announcement.
Copyright (c) 2024 CercleFinance.com. All rights reserved.