Italian bank Carige bailed out needs another 400 million euros
MILAN (Reuters) – Italian lender Banca Carige said on Thursday it needed an additional 400 million euros ($ 473 million) in capital and that there was no certainty of reaching a merger deal that it would ‘he sees it as the key to his eventual revival.
Carige, based in Genoa, was placed under special administration by the European Central Bank in early 2019, before being rescued a year later by the Italian Depositary Protection Fund (FITD).
The FITD is funded by contributions from other Italian banks.
Carige has said he needs to raise more capital by the third quarter of 2022 at the latest to help him achieve a net profit in 2023.
Carige’s shares have not been traded for the past two and a half years. The bank said it would resume operations on July 27.
In a prospectus intended for investors published before the resumption of the exchanges, Carige declared that “the restructuring and the relaunch of the group not being completed yet, significant uncertainties remain on the prospects of the group”.
Carige said a possible merger was a critical part of its redesign, adding “there is no certainty as to whether and when such a combination can be achieved.”
Carige needs a new buyer after Cassa Centrale Banca (CCB) decided in March not to exercise an option to buy FITD’s 80% stake amid market uncertainty caused by the pandemic.
FITD, which cannot be a long-term investor in a lender, earlier in June opened Carige’s books to potential suitors, according to people familiar with the matter.
Three years ago, the FITD injected 600 million euros into the loss-making bank to keep it afloat, for a stake now valued at only 104 million euros.
($ 1 = 0.8462 euros)
Reporting by Andrea Mandalà Editing by Valentina Za and Mark Potter