The unexpected public offer that Intesa Sanpaolo launched on UBI Banca on 18 February, Tuesday may create a banking group that in 2021 may have a 5% NPE ratio or less than 4% according to the guidelines of the European Banking Authority (EBA) (see here a previous post by BeBeez). The merged banks may have a 7.6% NPE that may go down to 7% at the end of 2020 through adjustments worth 1.2 billion euros and part of the negative goodwill of the transaction. In 2021, the gross NPE of the merged bank might be less than 5% after the sale of a portfolio of UBI’s NPLs with a face value of 4 billion.
For 2020, Hong Kong-based SC Lowy aims to invest 200 million euros in the financing Italian companies through the Italian subsidiary Solution Bank (fka Credito di Romagna) and launching a 200 million fund for acquiring the credits of companies in distress or special situation, Michel Lowy, the co-founder of the bank, said to BeBeez (See here a previous post by BeBeez). Lowy founded SC Lowy together with Soo Cheon Lee. Solution Bank is expanding its commercial bank activity to the syndicated loans and illiquid assets, with a special focus on sub-performing credit. Lowy said that the fund that the bank is launching will invest in single-name Utps or small portfolios of UTPs. Alessandro Esposito is the head of the Italian activities of SC Lowy.
Milan-listed investor in NPEs Illimity have done business for 1.9 billion euros between September 2018 and January 2019 (see here a previous post by BeBeez). This figure includes the issuance of loans to SMEs, the acquisition of portfolios of NPLs and senior financing to NPLs investors. At the end of 2019, the assets of the SMEs unit of Illimity amounted to 527 million (+65% since September 2019). Earlier this year, Illimity acquired 70% of IT Auction, a vendor of industrial and real estate assets sold through bankruptcy auctions. Corrado Passera is the ceo of illimity.
Algebris launched Algebris Npl Fund, an investment vehicle in distressed credits, with a one billion euros fundraising target (see here a previous post by BeBeez). The fund is for institutional investors and will last 6 years, including an investment period of 3 years. Investors signed commitments for 125 million and expressed interest for pouring 500 million. At the end of 2016, Algebris Npl Fund raised 1.25 billion ahead of a 1 billion target, while in 2014 it raised 437 million. The heads of Npl investments team of Algebris are Gabriele Giorgi and Antonella Di Chio. The professionals collaborate with Algos, a special servicer that belongs to Algebris.
Intrum Italy is holding exclusive talks for acquiring the credit management unit of Milan-listed Cerved Group (see here a previous post by BeBeez). Cerved reportedly hired Mediobanca in September 2019 for exploring options for Cerved Credit Management (CCM). The asset with an enterprise value of 400 million euros (6.5x the 2019 adjusted ebitda of about 60 million) attracted the interest of Credito Fondiario, Bain Capital and doValue. In 3Q19, CCM posted a turnover of 128 million (while Cerved’s revenues are of 325.9 million) with an ebitda of 44.8 million (142.9 million). Earlier in January, Cerved Group paid 43.25 million for the remaining 50.1% of Quaestio Cerved Credit Management, the vehicle through which Quaestio Holding and Cerved acquired from Mps in 2017 Juliet, the platform for the vendor’s distressed credits. Intrum is born in June 2017 out of the merger of Norway’s Lindorff (an asset of Nordic Capital) and Swedish Intrum Justitia. Intrum Italy is a joint venture between Intesa Sanpaolo (49%) and Intrum (51%) whose chairman is Giovanni Gilli and the ceo is Marc Knothe. Intrum previously acquired in Italy the NPL platform of Intesa Sanpaolo, assets of CAF in December 2017 from Lone Star, who also sold a 370 million worth portfolio of Npls, Gextra in May 2017 from Italfondiario and the founder Francesca Carafa, and Cross Factor in 2016.
Axactor Italy, the Italian subsidiary of Oslo-listed credit manager Axactor, posted a turnover of 25.1 million euros in 2019 (+124% yoy) (see here a previous post by BeBeez). The company’s revenues for 4Q19 have been of 8.3 million (over +167%). Antonio Cataneo is the ceo of Axactor Italy, which acquired a controlling stake of Italy’s CS Union in 2016 and the whole of it in 2019 when Banca Sistema sold its 10% stake in the business. In 2019, Axactor Italy hired Giovanni Restelli (Head of Operations), Fortunato Pagano (Head of Sales) and senior managers Paolo Ferro and Dario Lazzari.
Como’sCourt accepted the receivership application of Canepa, an Italian silk producer (see here a previous post by BeBeez). The turnaround plan of the company’s owner Michele Canepa received the approval of above 50% of the creditors. Senior creditors will receive about 9 million by January 2021. Subordinated creditors will receive 5 million in 2021-2024. Canepa provided his own resources as collaterals for this plan. In 2017, Dea Corporate Credit Recovery (part of Dea Capital Alternative Funds) acquired 75% of mid and long-term debts of Canepa, Snaidero, Calvi, Pieralisi, Grotto, Biokimica, Trend Group, Consorzio Latte Virgilio, and Zucchi. The company’s owner applied for receivership at the end of May 2018 after Dea CCR said it could reach a restructuring agreement with Canepa’s lending banks and acquire 67% of the business and committed to invest 19 million for relaunching the company and to seek a new industrial partner. Dea CCR sold the business to Michele Canepa and Maurizio Ceriani. Canepa has sales of 90 million euros (106 million yoy) with an ebitda in the region of 10% and net financial debt of 60 million.
Italian credit servicer Fire is interested in m&a and the launch of an IPO, said the company’s chairman Sergio Bommarito (see here a previous post by BeBeez). Alberto Vigorelli (group ceo of Fire) said that the company would target real estate surveyors. For the business plan 2021-2023, the company aims to post a 20% Cagr and invest 17 million euros after the issuance of a minibond by the end of 2020. The company will devote 35% of the investment will focus on digitalization and data science. Furthermore, Fire aims to hire a Chief Information Officer and a cco. Fire has assets under management worth above 20 billion euros, revenues of 49 million (+4% yoy) and an ebitda margin in the region of 10%.
Funivia Col Margherita issued a 0.5 million euros minibond due to mature in 2029 that Mediocredito Trentino Alto Adige subscribed (see here a previous post by BeBeez). The company will invest these proceeds and a loan that received from Banca per l’Impresa for building Rifugio InAlto, a cableway stop. Mauro Vendruscolo is the chairman of Funivia Col Margherita. Mediocredito Trentino Alto Adige advised and subscribed the issuances of Casa di cura Villa Regina di Arco, Pro.Ges Parma, Funivie Seggiovie San Martino, Innova, and AreaDerma. Such transactions are part of an agreement that the bank made with local entrepreneurial association and institutions for allocating 10 million to the issuance of minibonds of local SMEs. In December 2019, Mediocredito Trentino subscribed part of a 30 million minibond that GPI, an IT company that listed on Milan market after the business combination with the Spac Capital for Progress 1.