Eurocastle InvestmentLtd. said July 14 that its 50%-owned Italian banking unit doBank agreedto acquire 100% of independent credit management firm Italfondiario for about €27million.
DoBank specializes in the management and collection of nonperformingloans, with a gross book value of €45 billion in loans under management, while Italfondiariospecializes in the servicing of NPLs in Italy, managing loans with a gross bookvalue of about €43 billion.
Prior to the acquisition, Italfondiario was majority-owned byfunds managed by Fortress InvestmentGroup LLC.
The transaction is expected to close by September-end and issubject to Banca D'Italiaapproval. On completion, doBank and Italfondiario will be Italy's largest independentgroup specializing in the credit management and collection of NPLs in Italy.
DoBank intends to retain Italfondiario's separate identity andcredit management activities. The acquisition is part of doBank's broader plan toexpand and streamline its Italian operations.