The Italian government sells 20% of MPS and goes to 44%. It ends the dream of an Italian national bank

The Italian Treasury has initiated an expedited order collection procedure for the sale of 20% of the capital of Banca Monte dei Paschi di Siena (Mps). This announcement came in a note released immediately after the market closure. According to insights gathered by Milanofinanza.it, a significant portion of the book is reportedly already covered, and the offer could conclude shortly. The buyers are expected to be mainly international funds, some of whom are existing shareholders of Mps. The applied discount is approximately 6%, reinstating the bank among its customary major shareholders. After this sale, the Italian government’s share in the historical bank will descend below 44%.

The Ministry of Economy and Finance, as explained in the note, has launched an accelerated order collection procedure (“Accelerated Book Building – ABB”) for the sale of 251,937,942 ordinary shares of Banca Monte dei Paschi di Siena, equivalent to around 20% of the bank’s share capital.

Historical Monte Paschi’s HQ in Siena

A consortium of banks, including BofA, Jefferies, and UBS, serves as joint global coordinators and joint bookrunners, working on the placement. The objective is to facilitate the placement of these shares among qualified investors in Italy and foreign institutional investors.

As part of the transaction, it is anticipated that the Ministry of Economy and Finance (MEF) will commit, along with the joint global coordinators and joint bookrunners, not to sell any additional shares of the bank on the market for a 90-day period without their consent, unless exemptions are granted, following market practice.

The decision to sell follows a phase of robust appreciation of Mps shares. Favorable legal outcomes and record quarterly accounts have propelled the shares to a 20.51% gain in the last month, settling at EUR 3.07. Financial sources suggest that the EUR 3 threshold was deemed a trigger to commence the placement.

Join out telegram channel: https://t.me/ScenariEconomiciEnglish