Intesa Sanpaolo has sold 96 branches in Italy and the entire stake held by its subsidiary Banca CR Firenze in Cassa di Risparmio della Spezia (80% of the capital) to France-based Credit Agricole for a total cash consideration of approximately EUR740m.
Intesa Sanpaolo said that the around EUR585m of the total consideration are goodwill and other intangible assets. Upon completion of the transaction, Intesa Sanpaolo expects that it will gain a net capital of approximately EUR215m and nearly EUR370m of goodwill and other intangible assets that would be released and approximately 20 basis points of positive impact on the Core Tier 1 ratio.
According to the Intesa Sanpaolo, the 96 branches of the group involved in the sale are mostly located in the areas where the Credit Agricole already has a operations. As per year-end 2009, all the 96 branches under sale accounted for loans to customers of approximately EUR2b, direct customer deposits of EUR4.2bn and indirect customer deposits of EUR4.3bn.
The branches involved in the sale are three branches in Liguria, 28 in Lombardy, one in Piedmont, 15 in Veneto, 18 in Tuscany, four in Umbria and 27 in Latium.
Intesa Sanpaolo added that Cassa di Risparmio della Spezia operates with 76 branches in Liguria, Tuscany and Emilia Romagna. As at 31 December 2009, its loans to customers amounted to around EUR1.8bn, direct customer to EU1.8bn, indirect customer deposits to EUR1.9bn and the net shareholders’ equity was EUR179m.
However, the transaction is subject to necessary authorizations.