Banco BPM SpA signed a binding memorandum of understanding to sell its asset management business to Anima Holding SpA for a cash consideration of €700 million, in addition to deferred consideration estimated to be about €250 million.

The companies jointly said Aug. 4 that they signed the MOU concerning the sale of Aletti Gestielle SGR SpA. Banco BPM will also receive within 180 days of closing an estimated amount of about €250 million based on the unit's excess net shareholders' equity and net profit for the period at the time of closing, expected by the end of 2017.

Banco BPM may also transfer to Anima for €150 million delegated portfolio management activities in the insurance business carried out by Banca Aletti on behalf of insurance joint ventures in which Banco BPM is involved.

Meanwhile, Anima could raise €300 million in a rights issue, subject to shareholder approval. Banco BPM will keep "a significant stake" in Anima, with the commitment to underwrite on a pro rata basis the potential right issues.

The companies foresee the drafting of final agreements for the disposal of Aletti Gestielle "as soon as possible."

Earlier in January, Italian bank Banco BPM, which was created from the merger of Banco Popolare Società Cooperativa and Banca Popolare di Milano SpA, decided to sell Aletti Gestielle, whose AUM exceeded €18 billion as of June 30, 2017.

Banco BPM owns a 14.27% stake in Anima Holding.

Barclays Bank acted as the sole financial adviser to Banco BPM, while Bank of America – Merrill Lynch and Mediobanca – Banca di Credito Finanziario SpA advised Anima about financial matters.

Legance Avvocati Associati advised Banco BPM for the legal aspects of the deal, while Gatti Pavesi Bianchi Studio Legale advised Anima about legal matters.