MILAN: Malacalza Investment agreed on Sunday to buy 10.5 percent of Banca Carige from the Carige banking foundation in a 66.2 million euro deal that makes the family controlled holding the biggest investor in the mid-sized Italian lender.
Carige, one of the Italian banks under European supervision, failed a health check of lenders across the euro zone last year and is preparing to raise 700 million euros ($782.25 million) from investors to plug a capital shortfall.
The deal with Malacalza is expected to be completed by the start of the second quarter and is conditional on receiving approval from the Italian Treasury and the Bank of Italy before May 5, the groups said in a joint statement.
Under the accord, the Carige foundation, which will be left with a 4.8 percent stake, will have the right to designate a board member and the two will consult each other before taking any strategic decision concerning the troubled lender.
The transaction valued Carige shares at 0.062 euros, a 5 percent discount to Friday’s closing price. The foundation was advised by Banca IMI and Malacalza by UniCredit. ($1 = 0.8949 euros)