374 new shares for every 3 old shares – Corriere.it

The capital increase of Monte dei Paschi will start on Monday and will end on 3 November and will be fully guaranteed by the consortium of banks. One less problem for the new government that the leader of Fratelli di’Italia Giorgia Meloni is preparing to launch. The news of the go-ahead for the increase immediately caused the MPS stock to run on the Stock Exchange, which at the beginning of the session recorded a rise of 5.7% to 27.05 euros, after being suspended in the volatility auction for excess of rise and after 10% recorded Wednesday. Then the shot shot slightly down and around 10, the stock returns to auction again, scoring a theoretical -0.5%.

The bank led by Luigi Lovaglio has signed guarantee agreements for the recapitalization of 2.5 billion for a maximum amount of 857 million euros, of which 807 with a chicken of eight banks, which includes Mediobanca, Bank of America, JPMorgan and Credit Suisse, and 50 million with Algebris, Davide Serra’s investment company. Underwriting commitments were also received from third-party investors for € 37 million. Among the investors who have made commitments with the underwriting syndicate there is, as expected, the French insurer Axa, which after years returns to the bank’s shareholders.

The role of the Mef

THEl Mef, shareholder with 64.23%confirmed the commitment to adhere to the pro quota increase for an amount of 1.606 billion. Rocca Salimbeni specifies that with regard to the subscription by the Ministry of the Economy of its quota there is a constraint for the purposes of compliance with the Community legislation on State aid and at the end of the capital increase the Mef will not be able in any case to exceed the quota 64.23% of the share capital. Therefore, the underwriting commitment of the Treasury will become effective only pari passu with the other shareholders and, therefore, to such an extent as to keep the percentage of participation unchanged.

The exchange

The board of directors of the Sienese bank on Thursday set the economic terms and conditions of the increase, which is very dilutive: the new shares will be issued at 2 euros each, with a discount of 7.79% compared to the theoretical price after the detachment. of the option right (terp). Monte shareholders will have the right to subscribe 374 new shares for every 3 shares held.

The calendar

The Offer calendar provides that the option rights, valid for the subscription of the new shares (the option rights) can be exercised, under penalty of forfeiture, from 17 October to 31 October included. The option rights not exercised by the end of the option period will be offered on Euronext Milan (unexercised auction) on November 1st and November 2nd, unless the option rights have already been fully sold. The rights purchased at the auction must be exercised by 3 November.

Given the hyper-dilutive nature of the increase, the so-called rolling method will be applied during the option period, instrument promoted by Consob in order to mitigate the price anomalies typical of these recapitalisations. Consequently, shareholders who request them will be granted the right to receive the new shares at the end of the trading day on which the related option rights have been validly exercised. The option rights will also be negotiable on Euronext Milan from 17 October to 25 October.

Option rights not exercised within the term of the option period will be offered on the stock exchange (auction of the unopted) on November 1 and November 2, unless the option rights have not already been fully sold. The option rights purchased during the unexercised auction must be exercised by 3 November.