MILAN, Nov 14 (Reuters) – Italy’s Intesa Sanpaolo (ISP.MI) said on Monday it was selling its entire 5.1% stake in Nexi (NEXII.MI) in a bid to profit from a recent rise in the shares of group payments.
Intesa has entered into a 25-year partnership as part of the Italian bank’s 2020 sale of its retailers’ payments business to Nexi.
Intesa said in a statement that the sale of the stake would have no impact on its strategic partnership with Nexi.
As part of the 2020 deal, which netted Italy’s biggest bank a €1.1 billion capital gain, Intesa took a 9.9% stake in Nexi.
Intesa’s stake has shrunk as a proportion of Nexi’s capital after merger deals with Nordic rival Nets and national counterpart SIA, which saw Nexi issue new shares to existing shareholders of both companies.
Intesa’s move follows a rally in Nexi shares last week triggered by stronger-than-expected quarterly results from Europe’s largest payments group by volume of transactions processed.
However, Nexi shares are still down 30% year-to-date, according to Refinitiv data, after suffering a selloff along with other fintechs as economic growth slowed and interest rates were increasing.
Intesa paid 653 million euros for its stake in Nexi, which comprises around 67 million shares.
This broadly matches the market value of the stake based on Monday’s closing price of 9.76 euros per share, down 1.89% from the previous session.
Intesa said it hired BofA Securities and JPMorgan along with its own investment banking arm to sell the stake through an accelerated bookmaking process, which refers to trades made below market prices.
He did not reveal any details regarding the use of the product.
Reporting by Valentina Za; edited by Alexander Smith and Paul Simao
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