Italy’s Bper revises 2021 estimates, prices cash call after Intesa-Ubi deal

MILAN, Sept 30 (Reuters)Italian regional lender Bper Banca EMII.MI said on Wednesday it had revised its financial targets for 2021 after the purchase of 532 branches from rival Intesa Sanpaolo ISP.MI while pricing a cash call to fund it with a 31% discount.

BPER said it had trimmed the expected net profit for 2021 to 350 million euros ($410.62 million) from a previous estimate of 375 million euros due to a new closing timetable for the purchase. It now also projects a fully loaded CET1 ratio above 13%.

Earlier this year Intesa Sanpaolo ISP.MI snapped up smaller peer UBI Banca UBI.MI with an unsolicited paper-and-cash offer to create the euro zone’s eighth-biggest banking group.

To win antitrust approval Intesa agreed to sell 532 branches to Bper Banca.

Closing of the transaction is now expected in February 2021 for branches bought from UBI Banca and in the second quarter of the next year for those acquired from Intesa, the statement said.

The bank also said it would issue 891.4 million shares priced at 90 euro cents, equivalent to a 30.97% discount to the so-called theoretical ex-rights price (TERP) as part of the capital increase.

Shares in the bank closed down 2.8% at 1.95 euros each.

BPER Banca, whose top investor is Italian insurer UnipolSai US.MI with a 20% stake, said it has received regulatory approvals and expected to launch the share issue on Oct. 5.

($1 = 0.8524 euros)

(Reporting by Maria Pia Quaglia, editing by Louise Heavens)

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