Credito Valtellinese SpA is in talks to form an underwriting consortium for its planned €700 million capital increase, Reuters reported Nov. 22, citing "a source close to the matter."
The planned cash call is part of the Italian lender's business strategy for 2018 through 2020. Mediobanca - Banca di Credito Finanziario SpA will reportedly guarantee the cash call, having signed a pre-underwriting agreement.
The capital hike will fund CreVal's balance sheet cleanup under a turnaround plan, which has U.S.-based Cerberus Capital Management LP among the potential investors, Reuters reported Nov. 21, citing a source. CreVal's main shareholders have also reportedly expressed interest in its restructuring.
An ongoing road show in London, Paris and the U.S. promoting the restructuring has also gained interest, another source told the newswire.
However, Reuters wrote that it is too early to say whether Cerberus and CreVal's main shareholders — led by Denis Dumont, who owns around 6% of the bank — will commit to the cash call, which is expected to launch in February 2018.
Italian newspaper Il Messaggero reportedly said that Cerberus plans to provide around €100 million for the cash call, the newswire noted.