Auction for Banca Monte Paschi‘s platform that manages the Italian bank’s non-performing loans is having a break waiting for a clearer picture of the announced transation about the bank’s gross 27,8 billion euros non-performing loan portfolio sale and the 5 billion euros recapitalization (see here a previous post by BeBeez).
Working at the dossier are said to be Cerved Credit Management, the consortium Kkr-Varde Partners, the consortium Prelios-Christofferson Robb & Company and, each by itself, private equity firms Apollo Global Management, Cerberus and Lone Star, Reuters wrote. Some months ago also Fortress and Blackstone were said to be on the deal (see here a previous post by BeBeez).
Deadline for non-binding bids had been scheduled for the end of August but in the last few days the bank chose to delay to a new date which has not been fixed. This is because the deal perimeter has changed. Actually part of the deal was that Mps would have signed an agreement with the platform acquiror in order to allow it to manage all the 27.8 billion euros of NPLs for a number of years.
However last July 29th the bank stated that the announced securitization transaction on the whole Npl portfolio would include an agreement with the credit recovery platform who “will be able to manage a third of the securitized portfolio”, which means just more than 9 billion euros. Which is a significant change in the cards and will obviusly have an impact on the value of the whole deal. So private equity funds are now figuring out a new price for their bids.