Banco Bpm, what is said on the stock exchange about Nexi
Stock market repercussions for the Banco Bpm group's e-money deal with FSI. The exclusion of Nexi weighs on the Stock Exchange for the company led by Bertoluzzo who, however, communicates a commercial agreement with Shopware. Facts, numbers and insights
Stock market repercussions for Nexi after the Banco Bpm group's e-money transaction.
Banco Bpm rises in a tonic banking sector, after the announcement of the exclusivity in favor of Fsi sgr, Pay Holding and Bcc Pay for the potential partnership on e-money announced on 18 April. The stock rose by 1.4% to 4.379 euros. Nexi, on the other hand, remains behind (-2%), excluded from the tender.
This is the summary this morning by the Radiocor agency of the Il Sole 24 ore group of the effects on Piazza Affari of the operation communicated to the market concerning Banco Bpm's e-money ( here the in-depth analysis from Start Magazine ).
Nexi stock closed down 2% at the end of the day.
THE NEWS IN THE HOUSE OF FSI
The news concerning Banco Bpm intersect with those that emerged from an article in Start Magazine which highlights how in the shareholding structure of the Italian Strategic Fund (FSI), which will be one of the pillars of the operation with the bank led by the CEO , Giuseppe Castagna, the Ion group of Andrea Pignataro has sprung up , for some time under the scrutiny of the major Italian banks to which it is turning for further operations (Intesa Sanpaolo is said to be in the process of approving a loan, according to the rumors collected by Start Magazine ).
THE OPERATION OF BANCO BPM WITH FIS
But let's go back to Banco Bpm's operation on banknotes. The rumors speak of an offer by FSI of around 600 million euros, evaluated in terms of upfront payment and possible earnout. The exclusivity concerns the acquiring and issuing sector and the operation provides – in fact – for the payment of a cash sum by FSI and the possession by Banco Bpm of a share in the jv on payments. At the same time, the signing of a distribution agreement is expected which will allow the bank to maintain the current commission income, equal to around 140 million euros pre-tax in 2022, says Intermonte, who underlines how 'the positive impact on capital for Banco Bpm will depend on the share which he will hold in the jv".
THE NEGATIVE NEWS FOR NEXI
For Nexi, according to Equita, the news has "marginally negative implications", while Intermonte expects "a short-term negative reaction for the stock which risks losing an important partner in the Italian domestic market but which underlines the high interest in the sector". For Equita, the negative elements – notes the Radiocor agency – are above all the fact of not being able to further consolidate the positioning on the domestic market. Furthermore, they underline the fact that "Nexi has a licensing contract with Banco Bpm to outsource some of the bank's payment activities and that this contract represents a low single digit amount of the group's EBITDA". However, the extended times should dilute these negative effects and Nexi "should be able to recover some of the merchants that have left over time given the gap in the commercial offer and pricing compared to the new jv".
RELATIONS BETWEEN BANCO BPM AND NEXI
Intermonte highlights that the volume of business generated by the agreements between Banco Bpm and Nexi which expire in 2025 are not known. The negative impact after 2025 can be estimated in a loss of about 2/3% of the EBITDA. In addition, an aggressive new entrant to M&A will enter the market which could drive up the prices of similar transactions. For analysts, given that Nexi maintains agreements until 2025 and currently has channels with Visa and Mastercard, "it is therefore possible that it will be able to maintain/divert part of the business to other partner banks even after the end of the existing agreements with Banco Bpm, also on the basis of a technological value proposition currently superior to that offered by other players".
THE NEXI PRESS RELEASE WITH SHOPWARE
On the day when the company headed by Paolo Bertoluzzo slipped on the stock exchange, Nexi (owned by Cassa depositi e prestiti of the Ministry of the Economy) sent a press release to press agencies and newspapers announcing a commercial synergy. Nexi and Shopware, an open source platform for global e-commerce, have expanded their collaboration and signed a "platinum" partnership at European level. Under the agreement, Nexi will be able to better meet the needs of B2B merchants and specific vertical markets such as Pharma, Retail and Furniture, helping them to seize new business opportunities. The partnership also enables an omni-commerce suite. For Nexi, this is a further investment in strategic partnerships with the largest e-commerce platforms aimed at driving the evolution of digital payments in Europe, while for Shopware, the agreement represents a consolidation of its positioning in the DACH region, as well as an expansion in Italy and Southern Europe. “We are delighted to partner with Shopware, a recognized leader in innovation, with strong expertise in B2B e-commerce – commented Omar Haque, Head of Group E-commerce at Nexi – From a strong position in Germany, Shopware is rapidly expanding across Europe and our payments expertise, combined with our strong local presence, will help Shopware further expand its business and leverage a wide range of local payment methods”.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/banco-bpm-cosa-si-dice-in-borsa-su-nexi/ on Wed, 12 Jul 2023 13:28:48 +0000.