Banca Monte dei Paschi di Siena S.p.A. informs that it has reached a binding agreement with Cerved Group S.p.A. (“Cerved”) and Quaestio Holding S.A. (“Quaestio”) for the sale of its non-performing loans platform.
The transaction involves the sale of BMPS’ non-performing loans platform to a newly incorporated company held by Cerved and Quaestio and the signing of a long-term servicing contract for the management, out an outsourced basis, of the non-performing loans that will be generated by all the Italian banks of MPS Group. The servicing contract does not include loans classified as bad loans to be sold for EUR 28.6 billion as at 31 December 2016.
The sale of the non-performing loans platform is one of the actions planned in the recently approved BMPS Restructuring Plan and is aimed at improving credit recovery performance through a partnership with an important player specialised in the recovery of bad loans, that will grant high quality standards in the recovery activities, in line with best practices.
The sale price amounts to EUR 52.5 million, in addition to a potential earn-out of up to EUR 33.8 million, based on the achievement of economic results by 2025. The closing of the transaction, expected in the first quarter of 2018, is subject to approval by the supervisory authority as well as the successful completion of the precautionary recapitalisation process envisaged in the Restructuring Plan and the securitisation of the Bank’s non-performing loans, with subscription of the mezzanine notes by funds managed by Quaestio.
Source: Cerved Press Release