Banca Ifis, why will the parent company La Scogliera enjoy itself in Switzerland?
Objectives, unknowns, benefits and scenarios after La Scogliera, the holding company that controls Banca Ifis, will transfer the company's registered office to Switzerland, to Lausanne.
Banca Ifis in great shape yesterday in Piazza Affari on the wave of the announced transfer to Switzerland of the registered office of the controlling shareholder La Scogliera. The institute's shares closed up 8.73% to 13.70 euros.
The move of the Fürstenberg family holding, and the consequent deconsolidation of Banca Ifis, could produce financial benefits for the institute based in Mestre, Il Sole 24 Ore stressed today.
Equita analysts recall that at the end of the first quarter of 2021, the Cet1 of Ifis, equal to 11.8% with the consolidation in La Scogliera, would have been 16% on a stand-alone basis, while those of Mediobanca Securities expect that the is mainly used in the NPL business: “On the other hand, given the complexity of the entire procedure, the execution risk is not negligible”.
Here are all the details on the operation and on the bank that with the intervention of the Fitd fund recently carried out the rescue operation of Banca Aigis also to protect some German depositors after the Greensill bubo .
WHAT LA SCOGLIERA COMMUNICATED (BANCA IFIS)
Last Friday La Scogliera, a holding company that controls the Veneto-based institution with 50.5%, announced that it had initiated the procedures to transfer the company's registered office to Switzerland, to Lausanne. The decision came with the favorable vote of 98% of the capital of the von Fürstenberg family company, which today sees Ernesto Fürstenberg Fassio majority shareholder, as well as president of the bank itself.
THE NOTE OF LA SCOGLIERA WITH THE NEWS
The transfer of the registered office from Venice-Mestre to the Swiss country "will be completed – explains a note from the company – subject to the fulfillment of the conditions precedent and upon successful completion of the related legal obligations, within the current year". At that point, the holding "will consequently be excluded from the prudential consolidation perimeter of the subsidiary Banca Ifis".
WHAT ARE THE EFFECTS OF THE CLIFF MOVE
As mentioned, the majority shareholder announced last Friday after the market closed that it had started the procedures to transfer its registered office to Switzerland. On the basis of what was communicated by Banca Ifis, the transfer of the registered office of La Scogliera could have the effect of optimizing the bank's capital requirements, with the scope of regulatory consolidation that should be considered at the level of Banca Ifis and no longer, as it happens now, at the level of The Cliff. The institute reserved the right to identify more fully the actual benefits expected from the transfer of the parent company.
THE DOUBTS OF THE JOURNALIST LIERA
It seems (but further details are needed) that the parent company of an EU bank, if it is based in Switzerland, does not consolidate in the financial statements of the subsidiary and therefore does not affect its capital requirements.
That is, the solidity is always the same, but as if by magic the ratios improve. pic.twitter.com/BHdXQuIDWF– Marco Liera (@LieraMarco) June 19, 2021
THE EQUITA REPORT ON BANCA IFIS
If it were to go through, the operation "would allow Ifis to overcome one of its main criticalities, namely the uncertainty relating to an adequate level of capital to support growth and at the same time give visibility to the institution's dividend policy" , says Equita , which raises the target price from 11.6 to 14 euros, Il Sole 24 Ore stresses today.
THE COMPLEX OPERATION LA SCOGLIERA-BANCA IFIS
The procedure, which should take more than two months, is relatively complex, entailing the green light of the tax authorities and other administrative requirements: "The operation fits in successfully – enthusiastically commented Mf / Milano Finanza – in a project already announced by La Cliff in 2019 and aimed at completing a series of operations aimed at further strengthening the capital structure of Banca Ifis without upsetting the control structure. In the first quarter of this year, Banca Ifis reported a capital ratio, Cet1, of 11.8%, with the prudential consolidation in La Scogliera, which would have been 16% considering only the perimeter of the bank ”.
THE NEW TARGET PRICE FOR BANCA IFIS
By assigning a probability of 50% to the realization of this scenario, Banca Akros also raised the target price from 13.5 to 17 euros. KBW did the same, bringing the target price from 12.4 to 15 euros and remarking that "this change, implemented by Ernesto Fürstenberg Fassio, CEO of La Scogliera and vice president of Banca Ifis, should be perceived as friendly to shareholders minority ".
THE ASSESSMENTS OF INTESA SANPAOLO
Target price confirmed, on the other hand, by Intesa Sanpaolo at € 14.7 (rating add), but is keen to point out that it does not incorporate the potential capital advantage. In any case – we read on Mf – this investment bank also believes that the transfer of the La Scogliera headquarters is positive for Banca Ifis as it could, in fact, remove the penalty of about 400bps on the Cet1 assets deriving from the deduction of the La Scogliera minorities from the assets. supervisory authority of the bank. "Without this penalty, Banca Ifis's Cet1 for regulatory purposes would go from 11.77% to around 16% starting from March 2021. An additional capital endowment that could favor the organic growth of Banca Ifis envisaged in the new business plan, which it will be presented in the autumn ”, the Intesa Sanpaolo analyst report predicted.
RISKS AND BENEFITS ACCORDING TO MEDIOBANCA
More capital that "would allow the bank to give a significant boost to its growth trajectory", confirmed Mediobanca Securities, expecting that the additional capital will be used mainly in the NPL business. “On the other hand”, warned a report by the analysts of the Milanese investment bank, “given the complexity of the entire procedure, in our opinion, the risk of execution is not negligible”.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/banca-ifis-perche-la-controllante-la-scogliera-si-sollazzera-in-svizzera/ on Tue, 22 Jun 2021 09:28:06 +0000.