Bpm on the snub Nexi e-money and marries Tamagnini’s Fsi, all the details
What changes after Banco Bpm's move with FSI on money. Facts, numbers, comments and scenarios.
Bpm on the snub Nexi e-money (also owned by Cdp) and marries Tamagnini's Fsi.
Here are facts, numbers, comments and scenarios.
WHAT DID BANCO BPM DECIDE ON MONEY
Banco Bpm has granted an exclusive right for the establishment of a new pole in the e-money sector with FSI, the vehicle which today controls BccPay. There will be the establishment of a new pole in payments with the FSI, whose overall value is greater than 2 billion (between "upfront" and "running"). The partnership, writes the bank in Piazza Meda led by the CEO, Giuseppe Castagna (in the photo), "would lead to the creation of the second main national player in the sector, entirely controlled by Italian operators".
WHAT BANCO BPM COMMUNICATED
Precisely with a view to enhancing the 'money business', the bank's board of directors, "having examined the offers received from leading operators in the sector", resolved to grant an exclusive to Fsi Sgr, Pay Holding and Bcc Pay. This is an exclusive "aimed at negotiating and defining the terms and conditions of a potential partnership in the issuing and acquiring sectors, with the simultaneous activation of a joint venture, in whose capital the bank will be able to enter significant".
THE PLANS OF THE BANCA DI CASTAGNA
"The bank's plans – wrote Il Sole 24 Ore – thus envisage the creation of a joint venture, in the capital of which Piazza Meda will be able to enter with "a significant stake": it is estimated that Banco Bpm will return to the company with a 30 approximately %, similar to that of Iccrea, and the remaining 40% to FSI”.
THE DECISION OF BANCO BPM PRO FSI
The board of the Milanese bank has therefore conferred a mandate on the managing director, Castagna, "to negotiate the terms and conditions of the potential transaction, which is subject to the authorizations of the law, as well as to proceed with the eventual signing of the binding memorandum of understanding ”.
THE PURPOSES OF THE OPERATION
The target? “The new partnership could lead to the creation of the second national operator in terms of size, entirely controlled by Italian institutions, to which Banco Bpm intends to transfer its activities in the e-money business, with the recognition of a mixed consideration in cash and in shares involving benefits also in terms of capital".
THE NEXT STAGES
In detail, the simultaneous signing of a distribution agreement is envisaged which will allow Banco Bpm to "preserve the running commission levels (approximately 140 million euro in 2022) and to exploit all the valorisation potential – quantifiable at over 2 billion euro in terms of NPV – in a sector with high growth potential in terms of volumes and revenues”.
THE NUMBERS OF THE PROJECT
Banco Bpm quantifies the "net present value", i.e. the valorisation potential, at over 2 billion euro: a figure which includes the discounting of the value of the recurring net commissions of the payments business over the next ten years, which are amounted to around 140 million in 2022, Il Sole 24 Ore underlined.
THE COMMENT OF REPUBLIC
La Repubblica commented: “Somewhat surprisingly, Banco Bpm's board of directors granted the FSI fund led by Maurizio Tamagnini an exclusive right to negotiate the “enhancement of the e-money business” (payments). The surprise derives from the fact that Nexi, the European champion of the sector controlled by the CDP, and a joint venture between the Worldline group and Crédit Agricole which is a shareholder of Banco Bpm with 9.9% were also in the race. Evidently the offer from the FSI fund turned out to be significantly better than the others, both in terms of consideration and in terms of strategic value for the Banco given that the exclusivity is "aimed at a potential partnership with the activation of a joint venture, in whose capital the bank will be able enter with a significant share”. And the Italian nature of the operation may have played against the French this time. The declared objective, in fact, is that of the creation of the second largest national operator, entirely controlled by Italian institutions”.
WHO IS FSI AND WHAT DOES IT DO?
Fsi is an asset management company which owns the largest venture capital investment fund entirely dedicated to Italy and one of the three largest European funds dedicated to a single country, with a size of 1.4 billion euro. Fsi is based in Milan, has been operational since 2016 and aims to promote the entry of the excellence of Italian entrepreneurship into the capital market.
WHO ARE THE SHAREHOLDERS OF FSI
As can be seen from the information on the FSI website, the group of investors is heterogeneous by asset class and geographical origin and includes the European Investment Fund, European banks, insurance companies and asset managers, banking foundations, pension funds, family offices of industrial groups and sovereign wealth funds in the Middle East, Far East and Central Asia, some of which have already worked with the FSI team in the previous experience of Fondo Strategico Italiano. A year ago Cassa Depositi e Prestiti sold its 39% stake in FSI to the same fund led by Tamagnini.
THE DISTRIBUTION BY ASSET CLASS
Also from the website of the Fund led by Tamagnini it is discovered that the most important shareholders are Italian institutional investors, with a 40% share, followed by insurance companies (22%) and sovereign funds (16%). Also present were banks (12%), foreign institutional investors (8%) and family offices (2%), ie companies that manage wealth and investments of a wealthy family.
THE GEOGRAPHICAL DISTRIBUTION
With reference to the origin of the shareholders, therefore, it turns out that Italian investors are equal to 70% while international ones are 30%.
THE LATEST MANEUVERS OF FSI
FSI, which is the Italian partner of the entrepreneur Andrea Pignataro's ION, recently focused on Cedacri (which went from 360 million to 1.5 billion in value) and Cerved , where it is present in the minority, added Il Sole 24 ore : “ In Bcc Pay, the e-money of cooperative banks, FSI invested 200 million euros almost a year ago. In the technological field, FSI then took over a share in the Lynx group. In the four companies in which it has divested to date, accompanying them in their development, the turnover has increased from 2.5 to 3.5 billion euros and the Ebitda from 300 to 500 million”.
THE SIGHTS OF TAMAGNINI
In recent weeks Corriere della Sera wrote Maurizio Tamagnini, managing director of FSI who organized the operation, believes that speaking of an Italian fintech hub is limiting: it would be better to say a large digital group of Made in Italy. The intention of the head of the FSI company is to make the Italian Cedacri , marrying it to the Ion of the entrepreneur Andrea Pignataro (7 thousand customers worldwide, over 2 billion in declared revenues, 26 acquisitions concluded for 10 billion dollars), with financial vehicles between Ireland and Luxembourg , the Sia of banking technology, the software and technology platform for banks across Europe and beyond. And the operation with Bpm seems to fall within this logic.
THE COMMENT OF THE SOLE 24 ORE
The choice of Banco Bpm – remarked Il Sole 24 Ore – confirms “the climate of harmony existing between Piazza Meda and the strategic fund, which is already present with 9% in the capital of Anima, the Italian asset management giant. The vehicle driven by Maurizio Tamagnini, who is assisted in the deal by Vitale&Co, won the competition from Worldline and above all Nexi, which seemed to remain in the game right up to the end”.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/bpm-sulla-monetica-snobba-nexi-e-si-sposa-con-fsi-di-tamagnini-tutti-i-dettagli/ on Wed, 12 Jul 2023 07:25:04 +0000.