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Intesa Sanpaolo to convert savings shares into ordinary shares

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Intesa Sanpaolo to convert savings shares into ordinary shares

Intesa Sanpaolo SpA's board of directors proposed converting all of the bank's savings shares into ordinary shares at a ratio of 1.04 ordinary shares per savings share, subject to shareholder approval.

The conversion is aimed at simplifying the bank's capital structure and corporate governance by aligning all shareholder rights. The conversion will increase the bank's common equity Tier 1 ratio by 18 basis points.

The board will submit a proposal for the conversion and the concurrent removal of the indication of nominal value for the bank's shares from the articles of association at an extraordinary shareholders meeting April 27. A special meeting of the savings share holders has also been called on the same date for further approval.

The conversion will be effective only once it has been authorized by the European Central Bank and conditioned upon the amount owed to those who elect to exercise the withdrawal right.

The effective date is expected to fall after the ex-right date of dividends relating to the financial year ended Dec. 31, 2017. The withdrawal right will also commence after the ex-right date of dividends.

Morgan Stanley is the financial adviser for the conversion, while White & Case LLP is the legal adviser.