Banco BPM's Plans for Anima Holding Buyout

Investing.com – Italy's Banco BPM has announced plans to offer a buyout to take full control of asset manager Anima Holding, in a deal expected to be worth up to 1.6 billion euros.

In a statement on Thursday, Banco BPM detailed that the transaction relies on its insurance business acquiring at least a roughly 67% stake in Anima. By conducting the deal through the insurance unit, Banco BPM, which currently holds a 22% interest in Anima, can enlarge its stake while utilizing minimal capital.

Earlier this year, France's BNP Paribas carried out a similar purchase of the asset manager of insurer AXA via its BNP Paribas Cardif unit.

This move comes as Banco BPM seeks to bolster its fee revenues while facing declining borrowing costs that have recently enhanced profits. Banco BPM stated, "This structure provides positive foundations for a stable and lasting growth of the profit and loss accounts, also in terms of diversification of revenues in a scenario of a prospective reduction in the level of interest rates."

Upon completion, Banco BPM anticipates fees from services and commissions will increase to 45% of core revenues, compared to the current 37%.

For Anima shareholders, Banco BPM is offering a cash consideration of 6.20 euros per share, indicating a 24.9% premium based on Anima's average price over the six months leading up to November 5.

The bank added, "The transaction will bring important benefits for Banco BPM’s shareholders, with an increase of the revenue per share compared to the business plan equal to circa 10%."

Shares in both Banco BPM and Anima experienced gains in European trading on Thursday.