Banca Monte dei Paschi di Siena has signed a binding agreement with Quaestio and Cerved for the sale of its non-performing loans platform
Banca Monte dei Paschi di Siena S.p.A. informs that it has reached a binding agreement with Cerved Group S.p.A. (“Cerved”) and Quaestio Holding S.A. (“Quaestio”) for the sale of its non-performing loans platform
Milan, 2 August 2017 – Banca Monte dei Paschi di Siena S.p.A. informs that it has reacheda binding agreement with Cerved Group S.p.A. (“Cerved”) and Quaestio Holding S.A.(“Quaestio”) for the sale of its non-performing loans platform.
The transaction involves the sale of BMPS’ non-performing loans platform to a newlyincorporated company held by Cerved and Quaestio and the signing of a long-term servicingcontract for the management, out an outsourced basis, of the non-performing loans that willbe generated by all the Italian banks of MPS Group. The servicing contract does not includeloans classified as bad loans to be sold for EUR 28.6 billion as at 31 December 2016.
The sale of the non-performing loans platform is one of the actions planned in the recentlyapproved BMPS Restructuring Plan and is aimed at improving credit recovery performancethrough a partnership with an important player specialised in the recovery of bad loans, thatwill grant high quality standards in the recovery activities, in line with best practices.
The sale price amounts to EUR 52.5 million, in addition to a potential earn-out of up to EUR33.8 million, based on the achievement of economic results by 2025. The closing of thetransaction, expected in the first quarter of 2018, is subject to approval by the supervisoryauthority as well as the successful completion of the precautionary recapitalisation processenvisaged in the Restructuring Plan and the securitisation of the Bank’s non-performingloans, with subscription of the mezzanine notes by funds managed by Quaestio.
The Bank was assisted by Mediobanca as financial advisor, Bain & Company as strategicadvisor and the law firm Bonelli Erede as legal advisor. Cerved and Questio were assistedby KPMG Corporate Finance as financial advisor, and by Latham & Watkins and ChiomentiStudio Legale as legal advisors.