Alchemy Special Opportunities Fund has signed an agreement to buy control of Sigla Group, made by Sigla Credit which is recorded in the register of intermediaries pursuant to Art. 106 of the Italian Banking Law (TUB), and operates in the sale of salary-backed loans, and is active in the servicing of non-performing loans with its subsidiary SiCollection. The deal is expected to close by the end of 2017 (download here the press release).
Sigla Group has been controlled (through Sigla Luxembourg sa) till now by Palomon Capital fund and by Milan-listed investment company Dea Capital (De Agostini Group) with the management, led by ceo Vieri Bencini, having a minority stake. Mr. Bencini had bought out the company in 2005 backed by Palamon Capital while Dea Capital invested in the group in October 2007.
In June 2016 Sigla’s shareholders entered in exclusive talks with funds managed by Oaktree to sell their stakes in the company, after Oaktree’s offer was preferred to some 7-8 other bids from private equity firms such as Centerbridge and Apollo maangement and from Banca Sistema, an Italian bank focused on buying credits versus Italian public administration. back then Sigla Group eas said value about 40 million euros (see here a previous post by BeBeez).
Dea Capital has announced that from the sale of its stakes in Sigla and SiCollection through its 41.39%-owned subsidiary Sigla Luxembourg sa, it will cash 11.8 million euros in, net of transaction costs and the related management equity plan costs (at Sigla Luxembourg level) (see here the press release).
Sigla Credit issued 180 million euros in loan last year (+18.1% from 2015), for about 9 thousand contracts signed (see here a previous post by BeBeez). In the last four years Sigla Credit has been doubling its issuance from 93.5 million euros in 2013. In 2016 Sigla Credit intermediation margin grew to 12.8 million euros from 10 millions the year before with a net profit of 1.6 millions (+37% from 2015).
As for Si Collection, the company reached 800 million euros of Npl under management at the end of 2016 for about 122 worked out positions.
Sigla Credit and SiCollection were supported for the deal by lawyer Alberto Dubini and Delfino Willkie Farr & Gallagher law firm and by financial advisor PwC. while Alchemy Special Opportunities Fund was advised by MacFarlanes and Pedersoli law firms and by financial advisors Heba Advisors and EY.
