Business

Italy’s Intesa sells 654 million euros stake in payments group Nexi


© Reuters. FILE PHOTO: Intesa Sanpaolo bank logo and stock chart shown in this illustration taken May 3, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

By Valentina Za

MILAN (Reuters) – Italy’s Intesa Sanpaolo (OTC:) said on Monday that it has sold its entire 5.1% stake in Nexi (BIT:), in an attempt to cash in on a share price rally. recent group of payments.

Intesa has agreed to a 25-year partnership as part of the Italian bank’s 2020 sale of its retailers’ payments business to Nexi.

Intesa said in a statement that the share sale will not affect its strategic partnership with Nexi.

Under the 2020 deal, which gave Italy’s largest bank a capital raise of 1.1 billion euros, Intesa took a 9.9% stake in Nexi.

Intesa’s stake becomes smaller than Nexi’s share of capital following merger deals with Nordic rival Nets and domestic peer company SIA, Nexi issues new shares to existing shareholders of the two companies. company.

Intesa’s decision comes after last week’s rally in Nexi shares was triggered by better-than-expected quarterly results in Europe’s largest payments group by volume processed.

Still, shares of Nexi are still down 30% year-to-date, according to Refinitiv data, after selling off along with other fintechs as economic growth slows and interest rates rise.

Intesa paid 653 million euros for its Nexi stake, which includes about 67 million shares.

That is generally in line with the market value of shares held based on Monday’s closing price of 9.76 euros a share, down 1.89% from the previous session.

Intesa said it hired BofA Securities and JPMorgan (NYSE:NYSE:) as well as its own investment banking arm to sell shares through an accelerated book-building process, which deals with transactions. executed at a discount to the market price.

It did not disclose any details regarding the use of the proceeds.



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