Banca Carige SpA entered into exclusive negotiations with Chenavari Investment Managers over the sale of the Italian bank's consumer credit unit, Creditis Servizi Finanziari SpA, and said it expects to sign a deal by Dec. 6.
Chenavari Investment Managers has also underwritten a first loss commitment with Equita SIM SpA for up to €40 million as part of Banca Carige's rights issue, taking over the commitment previously undertaken by another bidder for Creditis. Compania Financiera Lonestar, which owns an approximately 6% stake in Banca Carige, also confirmed its commitment to increase its stake in the lender to 9.9% through the rights issue.
Further, Italian insurers Generali, Intesa Sanpaolo Vita SpA and UnipolSai Assicurazioni SpA have agreed to take up €45 million of a €60 million tranche of the capital increase reserved for former holders of subordinated notes that were converted into new debt as part of a bond swap.
Additionally, Banca Carige's board of directors resolved upon the sale of a €1.2 billion bad loan portfolio and its related servicing platform to Credito Fondiario SpA under improved financial terms with respect to those anticipated in the bank's business plan. The deal is expected to be signed by close of business Dec. 5.
KPMG Corporate Finance managed the Creditis disposal.
