UniCredit, the largest Italian lender, is selling a 17 percent stake in its online broker business FinecoBank, which is set to raise over $1.3 billion as it seeks to free up more capital.
UniCredit had already sold a 26 percent stake in the unit back in 2016 just as its CEO Jean Pierre Mustier started a strategic in-depth review in an attempt to boost capital and improve profitability. The two-phase sales netted over €880 million.
In a statement, UniCredit said it would sell up to half of its 35 percent stake in FinecoBank’s existing shares to certain institutional investors via an accelerated book building process. At current market prices, the whole stake in Fineco is valued at €2.4 billion ($2.7 billion) and a book value of just under one billion euros.
It further explains: “UniCredit S.p.A. ("UniCredit") and FinecoBank S.p.A. ("Fineco") announce that their respective Boards of Directors approved certain actions and procedures to be implemented by UniCredit and Fineco, in order to allow Fineco to operate as a fully independent entity from a regulatory, Liquidity and operational standpoint, also potentially outside the UniCredit Group in the future.”
Italy’s biggest lender added that Fineco has limited synergies with the rest of its business and as a fully independent company, it would be able to focus on its own development and standalone growth prospects.
“This would have no implications for Fineco business model and customer base and no material impacts on its capital and liquidity strength nor on its profitability," the bank added in its statement.
Launched in 1999, Milan-headquartered FinecoBank is part of Italy’s largest lender UniCredit that provides domestic and international banking, brokerage and investing services.
FinecoBank’s main proposition hinges on what it calls its “one stop solution”: a multi-functional account with no fees attached.
With over one million customers in Italy, FinecoBank has recently turned its gaze towards the UK, establishing itself as a key player with its combination of banking and trading services. The group aims to attract clients interested in tapping into its in-app trading services, which currently trades on 26 equity markets and in more than 50 FX pairs.
