Intesa Sanpaolo Makes EUR4.86 Billion Offer to Buy UBI Banca

   By P.R. Venkat 
 

Intesa Sanpaolo S.p.A. has made an voluntary offer to acquire Unione di Banche Italiane S.p.A., or UBI Banca, in a deal valued at 4.86 billion euros ($5.27 billion).

Under the proposed offer, UBI Banca shareholders will get 17 newly issued shares of Intesa Sanpaolo for every 10 UBI Banca shares held, Intesa said in a statement.

The share offer values UBI stock at EUR4.254 apiece. UBI Banca shares closed 5.5% higher at EUR3.49 on Monday, while Intesa shares closed 1.3% higher at EUR2.54.

"The prospect of the financial and banking sector in the coming years is characterized by a consolidation in which the main operators will be champions both in Europe and outside Europe," Intesa said in a statement late Monday, adding that the combined entity could generate consolidated profits higher than EUR6 billion starting in 2022.

Intesa said the finalization of the transaction is expected to take place by the end of this year and is subject to the receipt of regulatory authorizations.

Once the deal is completed, Intesa plans to delist UBI Banca, the fourth-largest banking group in Italy by number of branches, with a market share of about 7%.

"The combined group will have over EUR1,100 billion in customer financial assets with around three million UBI Banca customers, who hold around EUR200 billion in financial assets," according to the statement.

Intesa Sanpaolo is one of the top banking groups in Europe with a market capitalization of EUR44.43 billion. The Italian bank provides retail, corporate and wealth management services with a network of about 3,800 branches. It has a market share of 12% in most Italian regions, according to its website.

Write to P.R. Venkat at [e-mail]

(END) Dow Jones Newswires

February 17, 2020 22:14 ET (03:14 GMT)

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