How the French of Crédit Agricole will eat Credito Valtellinese (Creval)
With 737 million, the French group Crédit Agricole will buy Credito Valtellinese with a takeover bid. The Algebris di Serra fund is ready to sell its 5.4%. All the details on the voluntary tender offer of the French giant on the Creval
Crédit Agricole Italia, a company 75.6% controlled by the French group Crédit Agricole, launches a voluntary takeover bid with cash consideration for all the shares of Credito Valtellinese.
INVESTMENT OF AGRICULTURAL CREDIT
The takeover bid with consideration in cash by Credit Agricole Italia on Credito Valtellinese is equal to € 10.50 per share. This price is equivalent to a total investment of 737 million by Crédit Agricole Italia to get to hold 100% of the shares of Credito Valtellinese.
THE VALTELLINESE CREDIT AWARD
The consideration incorporates a 53.9% premium compared to the weighted average price of the last 6 months and a 21.4% premium compared to the most recent official Credito Valtellinese price on Friday 20 November.
THE GOALS OF THE FRENCH ON THE CREVAL
The offer will be conditional upon the achievement by Credit Agricole Italia of a stake equal to at least 66.7% of the share capital with voting rights of Credito Valtellinese, with the possibility for Credit Agricole Italia to waive this condition provided that it has acquired at least 50% + 1 share of the share capital with voting rights of Credito Valtellinese.
THE AGREEMENTS BETWEEN AGRICULTURAL CREDIT AND ALGEBRIS
Crédit Agricole Italia has already received a commitment to sell from Algebris, for its investment in Creval equal to approximately 5.4% of the share capital, subject to regulatory approval. In the context of the offer, Crédit Agricole Assurances (subsidiary of Credit Agricole) will sell the investment held in Credito Valtellinese, equal to approximately 9.8% of the share capital, to Credit Agricole Italia.
REVOCATION
In the event that, as a result of the Offer, Crédit Agricole Italia comes to hold an overall stake of more than 90% of the share capital of Credito Valtellinese, Crédit Agricole Italia does not intend to implement measures aimed at restoring the minimum free float conditions for a regular trend in the trading of Credito Valtellinese shares, and this will entail the revocation of the Creval shares from listing.
THE NEXT MOVES
In any case, following the offer, if the conditions are met, Crédit Agricole Italia will undertake the necessary activities to proceed with the merger by incorporation of Credito Valtellinese, through which to achieve full integration and, therefore, maximize the creation of value in line with the strategy implemented by Crédit Agricole Italia in the latest significant transactions.
PREVIOUS
Such as the mergers into Credit Agricole Italia of Cassa di Risparmio di Rimini, Cassa di Risparmio di Cesena and Cassa di Risparmio di San Miniato in 2018 and Cassa di Risparmio della Spezia in 2019.
THE OBJECTIVES ON PROFIT
Crédit Agricole expects the transaction to produce an increase in earnings per share by 2022 and to generate a Return on Investment greater than 10% in 3 years, based only on cost and funding synergies. The operation will allow the creation of long-term value through the progressive cross-selling with the business lines of Crédit Agricole, an important pillar of our strategy.
CONSONANCES BETWEEN AGRICULTURAL CREDITS AND CREVAL
"Credito Valtellinese shares with us many of the basic values that represent the raison d'être of Credit Agricole Italia: the local roots, the attention to local communities and the social and entrepreneurial fabric of reference, the enhancement of people, sustainability of the business model ”, underlines the president of Credit Agricole Italia, Ariberto Fassat i. “With this integration – he adds – we are convinced that we can create added value for all stakeholders”.
THE NEGATIVE IMPACT FOR THE AGRICULTURAL CRÉDIT
Upon completion of the transaction, it has been preliminarily estimated that the negative impact of the transaction on the Common Equity Tier 1 of Credit Agricole will remain below 20 basis points. Based on past experience in making successful mergers, Credit Agricole is confident in Credit Agricole Italia's ability to integrate Credito Valtellinese smoothly and with minimal integration risk.
TOWARDS THE MERGER BY INCORPORATION
Following the offer, Crédit Agricole Italia intends to proceed with the merger by incorporation of Credito Valtellinese into Credit Agricole Italia in order to allow effective integration of its activities with those of Credito Valtellinese.
CURRENT COLLABORATIONS BETWEEN AGRICULTURAL CREDITS AND CREVAL
Crédit Agricole and Credito Valtellinese already enjoy a strong collaboration today. Credit Agricole Vita, the Italian subsidiary of the group operating in the life insurance business, is the exclusive partner of Credito Valtellinese in the life insurance business while its parent company, Credit Agricole Assurance, is one of Creval's main shareholders, with a 9.8% stake. The acquisition of Credito Valtellinese is therefore an extension of Credit Agricole's strategic partnership with Credito Valtellinese, supported by a strong industrial and cultural affinity, and in line with Crédit Agricole Italia's sustainable growth strategy.
HOW IT IS AND WHAT IT DOES THE CREDIT AGRICOLE GROUP IN ITALY
The Credit Agricole group has been present in Italy for some time and today serves 4.5 million customers in the country, through more than 1,000 points of sale (mainly branches of Credit Agricole Italia, Credit Agricole FriulAdria and Agos), with the support of 14,000 employees on the national territory. Italy contributes 15% of Crédit Agricole's total net profit, making it the second largest domestic market for the Crédit Agricole Group. The acquisition of Creval represents an ideal growth opportunity for Credit Agricole Italia, especially in terms of geographical coverage with a significant strengthening in Northern Italy (70% of the number of pro forma branches). And in particular the doubling of the market share in Lombardy (from 3% to more than 6%), where Credito Valtellinese operates with more than 40% of its branches, becoming the 7th bank in the region. But also a dimensional increase in Piedmont, Marche and Lazio and access to new regions, including the most dynamic metropolitan areas of Sicily, as well as Valle d'Aosta and Trentino.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/ecco-come-i-francesi-di-credit-agricole-si-papperanno-il-credito-valtellinese-creval/ on Mon, 23 Nov 2020 10:47:21 +0000.