The operation had been in the air for some time and the third quarter accounts gave further boost to the Treasury which controls 64% of the bank saved from bankruptcy in 2017
The Ministry of Economy and Finance has put up for sale a 25% stake in Monte dei Paschi di Siena (Mps). This move increased the Treasury’s participation from 64.2% to 39.2% of the capital of the Sienese bank. The operation was managed through an accelerated order collection procedure and entrusted to a consortium made up of Bank of America, Jefferies and Ubs.
Purpose of the operation
The objective declared by the Mef is to promote the placement of shares with qualified investors in Italy and foreign institutional investors. This sale represents the first phase of a broader process which aims to fully enhance the value of the bank in the context of its solid capital and income framework.
Demand exceeds supply
MPS shares were massively requested, so much so that the Mef had to increase the quantity initially offered, initially equal to 20% of the capital, due to demand five times greater than supply. The offer was increased from 20% to 25% of Bmps’ share capital. This is what we read in a note released by the Mef.
The price per share is equal to 2.92 euros for a total value of approximately 920 million euros. The consideration incorporates a discount of 4.9% compared to the closing price of the Bank’s shares recorded on 20 November 2023 and is almost 50% higher than the subscription price of the Bank’s share capital increase carried out in November 2022. Following the operation, the stake held by the Mef in Bmps will decrease from 64.23% to approximately 39.23% of the share capital.
The operation represents the first phase of the broader process that will lead the Mef to fully enhance the bank, in the interest of the same and of all stakeholders, in the context of the solid capital and income framework that characterizes the Bank and its prospects for further development. The Mef has undertaken with the Joint Global Coordinators and Joint Bookrunners not to sell further Bmps shares on the market for a period of 90 days.