Unicredit, the increase of the capital’s largest ever – The Republic

(reuters) MILAN – the Thirteen billion required to the market makes of the share capital increase of Unicredit, the largest in the history of Piazza Affari. The operation begins today, Monday, February 6, and close on Friday 10 march, and on the Borsa italiana the title of the bank is weak, entre considerably worsens the performance of the law. “We expect the title to be under pressure with the start of the capital increase,” wrote the analysts Intermonte. In this first phase of trading decreases, although sensitive, are all in all content, when compared with other transactions of capital increase, to greater reason in view of the fact that Unicredit is the largest recapitalisation in the history of the Square Business.

the structure of The transaction provides for an offer price of the securities to 8,09 euro per share, with an option ratio of 13 new ordinary shares for every 5 old shares of each category held. For the trading of rights, there will be time until February 17. The price represents a discount on the Theoretical ex right price (Terp) of 38%. The Terp is the theoretical price of an action, after the detachment of the right of option relative to a share capital increase. “Compared to the closing price of last Friday, the theoretical price post ex-rights (Terp, ed) to be taken to refer to the negotiations today, is equal to approximately 13,11 euro”, they say from Icbpi. “We have adjusted the previous target price (29.00 euro) to take account of the capital increase (14,50 euro). We maintain for the moment the recommendation, pending the final results of the 2016 and the revision of the assessment after the increase of capital”.

The transaction is dilutive to those who decide not to follow, that will see a decrease of their participation in the shareholding of the more than 70 percent. The Fondazione Cariverona (shareholder of Unicredit with 2.2%) decided to subscribe the increase to 73% and you dilute then to 1.8%. The Fondazione Crt should adhere to the share of 2.3%, explained last week the new president, Giovanni Quaglia. Then there is Capital Research, a shareholder with 6.7% that it should subscribe to all of the option rights, thus confirming its market share. While not do not know the intentions of the Mubadala investment company pjsc, the sovereign wealth fund of Abu Dhabi, which has 5% of BlackRock and the willingness of the central Bank of libya and the sovereign wealth fund, the Lia, which have a total of about 4%. Then there is Leonardo Del Vecchio, shareholder of 2% through the financial Delfin, who should attend for a whole while Francesco Gaetano Caltagirone has not yet decided anything.

In the week before, the bank gave some information important: while waiting of the board of directors on the accounts of February 9, he anticipated that the budget for 2016 will close with a loss of € 11.8 billion, the result of the maxi-cleaning of impaired loans, while the Ecb has asked the bank to prepare a strategy for the reduction of non-performing loan by the end of the month. Significant news, then, from the front of the relations with the trade unions: the management and the workers ‘ representatives came to an agreement on 3.900 voluntary departures, in front of 2 thousand assumptions.

Topics:

Unicredit

capital increase

Piazza Affari

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