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Thousands of small shareholders in Carige seek to push through €900M rescue plan

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Thousands of small shareholders in Carige seek to push through €900M rescue plan

Thousands of small stakeholders in Banca Carige SpA will attend a shareholders meeting Sept. 20 to push through the troubled Italian bank's proposed €900 million rescue plan, which could potentially be thwarted by the lender's top investor, the Malacalza family-controlled Malacalza Investimenti Srl, Reuters reported.

Expected attendance at the meeting so far stands at about 80% of Carige's capital, according to a source speaking to Reuters. An attendance of at least 90% and a majority of two-third votes are needed to counter a potential rejection by the Malacalzas, which hold a 27.5% stake in the company.

It is unclear whether the Malacalzas will back the proposed rescue plan, having already blocked a €400 million cash call in December 2018, which prompted the European Central Bank to place the bank under special administration.

Carige's rescue plan includes a share capital increase of €700 million and an issuance of €200 million of new subordinated bonds, as well as a full-scale disposal of €3.1 billion of nonperforming loans.

Meanwhile, Carige said events after June 30 did not impact the adequacy of its rescue plan, adding that the planned capital increase would allow it to meet capital requirements set by the ECB on a consistent basis, Reuters reported separately. The bank said its pro forma core capital ratio at June-end would rise to 13.9% from 8.2% after the planned capital increase, the newswire added.

According to a separate Reuters report, Italy's state-owned bad loan manager AMCO, formerly Società Per La Gestione Di Attività - SGA SpA, is assessing other bad loan portfolios for acquisitions while waiting for Carige to obtain shareholders approval for its planned rescue plan.

The proposed rescue plan will see AMCO acquire €3.1 billion in bad debt from Carige following shareholders approval.

AMCO, which has €20.6 billion in assets under management as of June 30, did not disclose details about the other bad loan portfolios under consideration, the newswire said.