Elliott Management, through its investment veichle Tiber Investments sarl, will subscribe a 65 million euros dedicated capital increase in Credito Fondiario, one of the leading operators in Italy in the credit management services sector, with over € 45 billion gross of non performing exposures under management and a portfolio of investments in impaired loans of approximately € 700 million.
The deal was anticipated last August by MF Milano Finanza and the agreement had been signed last May 29th by Tiber, Tages Holding and the minority shareholders of the bank. The formal announcement was given yesterday evening by Credito Fondiario just after having received the go-ahead by the European Central Bank and by the Bank of Italy (see here the press release).
Thanks to the capital increase which will be followed by the conversion of Class A2 shares (with lower voting rights) already owned by Elliott into ordinary Class A1 shares, Elliott’s stake in Credito Fondiario will raise from actual 40% to 69.48% and might reach 81.63% in the future. Actually Elliott had entered the capital of Credito Fondiario in the spring of 2016 and through more capital increases had obtained securities of category A2. Credito Fondiario is in sight of a possibile ipo next year.
