Genoa-based Banca Carige has entered into exclusive negotiations with London-based hedge fund Chenavari Investment Managers, over the sale of its consumer credit company Creditis Servizi Finanziari (Creditis).
Banco Carige is aiming to agree a deal by 6 December as it looks to comply with ECB demands that it increase its capital and cut bad loans to avoid winding up proceedings.
Chenavari Investment Managers has also committed to buy up to EUR40 million in unsold Creditis shares, taking over a commitment previously undertaken by another bidder as part of the competitive bidding process for the business.
Members of the underwriting syndicate, Credit Suisse Securities (Europe) Limited, Deutsche Bank AG London Branch and Barclays Bank PLC, have subsequently confirmed their commitment to supporting Banca Carige in its capital strengthening plan, another major part of which includes the sale of a bad loan portfolio amounting to gross EUR1.2 billion, along with the relating servicing platform, to Credito Fondiario, which is contriolled by Tages Group, another hedge fund based in London and Milan.
