US turnaround specialist Oaktree Capital Management bought control of Banca Popolare Lecchese, a small bank active in the Northern Italy’s area around Lecco (Como lake). The seller is Nuova Banca Etruria (download here the press release), the new bank born after the Italian Government rescued Banca Etruria and other three Italian banks from backrucpty last November by a special decree (see Reuters here),
Nuova Banca Etruria sold to Oaktree its 54.212% stake in banca Lecchese’s capital, while the remaining stake is still owned by private invostors, many of whom are also clients of the bank.
More in detail the deal has been signed by Bpl Holdco sarl, a newco controlled by funds managed by Oaktree Capital Management.
Oaktree had been in talks with Banca Etruria about the deal since last July (see here a previous post by BeBeez). The sale was closed at a positive price for Banca Etruria and Oaktree will invest a total of 10 million euros in Banca Lecchese MF-Milano Finanza wrote last Saturday December 19th.
in a press release published last Friday December 18th Banca Lecchese said that “as for the ongoing capital increase, Oaktree already had declared available to subscribe option rights connected to its stake and any option rights unexercised so that the whole capital increase will be subscribred by the end of this year. This deal will strenghten Banca Lecchese’s balance sheet and will bring the bank’s capital ratios above capital requirements”..
Nuova Banca Etruria has been supported for the deal by Ashurst law firm, while Oaktree Capital Management has been advised by Nctm law firm.