Italian financial group UniCredit SpA (BIT:UCG) said it had pocketed some EUR890m (USD1.2bn) from the sale of 9.1% in its Polish unit Bank Pekao SA (PINK:BKPKF).
The group sold around 23.9m Pekao shares at PLN156.00 (USD50.40/EUR37.14) apiece to institutional investors, it said. The price was 6% below the Pekao closing before this announcement and 4% lower than the average price over the last three months.
The sale generated a capital gain of about EUR135m to UniCredit, resulting in an increase in the group’s CT1 ratio BIS2.5 based on its weighted assets as at 30 September 2012.
Following the placement, the Italian bank remained with 50.1% in Pekao and will continue its commitment to the subsidiary and to the Polish market which is core to its franchise and strategy.
UniCredit, which agreed to a one-year lock-up period for its remaining stake in the Polish unit, said it does not expect to shed further Pekao shares after this sale.
UBS Limited, UniCredit CA-IB Poland and Citigroup Inc (NYSE:C) were in charge of the share placement
UK-based private equity fund Pamplona Capital Management LLP said it had built a 5% stake in Italian lender UniCredit SpA (BIT:UCG) and became the bank’s second largest investor.
The Abu Dhabi investment fund Aabar holds the largest stake of 6.5% in the Italian lender.
Pamplona, which bought additional UniCredit stock to add to its previous 1.99% stake, said it wanted to capitalise on the expected restructuring of the banking sector in Europe.
The fund did not say how much it had paid for the UniCredit stock, but said it had used equity and debt financing to cover the deal. Based on current market prices, the stake it holds in the Italian bank is worth some EUR750m (USD).
The investment, one of the largest this year by a foreign group into an Italian company, was made through Pamplona’s EUR1bn fund The Pamplona Global Financial Institutions Fund backed by a number of institutional investors and targeting long and medium-term investments in European banks.
Reuters cited a spokesman for the private equity firm as saying that the transaction was cleared by the Italian regulators.
Russian Alfa Bank’s former CEO Alex Knaster founded Pamplona and remained a big investor in the group’s funds, the Financial Times said.
Pamplona Capital Management has over USD6bn of assets under management.
UniCredit share price has decreased by over 40% this year, Reuters said.