Italy’s Cassa Depositi e Prestiti (CDP) is currently in opposition to the payments group Nexi selling a majority stake in its digital banking solutions business to private equity firm TPG, as reported by Reuters and confirmed by two sources familiar with the situation.
CDP, which currently holds a 19.14% stake in Nexi, is standing against a complete divestment of the digital banking division, along with senior Italian officials, citing the strategic importance of the banking-services sector.
Recently, Nexi received a proposal from TPG to acquire various assets within the digital services division that caters to banks. TPG put forward a bid of approximately €1bn ($1.16bn) for these assets, while Nexi has highlighted that the offer is subject to certain conditions and has not disclosed the exact value of the bid.
The digital banking division of Nexi encompasses Italy’s national interbank network, spanning over 200,000km and connected to the Bank of Italy for processing banking transactions. This unit provides technology for open banking, corporate banking services, and interbank clearing systems, generating core earnings of €155m last year.
Nexi is facing increasing competition from fintech companies and instant payment platforms, leading to a decline in market share and squeezed margins, according to reports. The company’s shares are currently trading just above €4 ($4.6), valuing Nexi at nearly €5bn ($5.8bn), a significant drop from its peak valuation of over €20bn ($23.15bn) in July 2021.
In a separate update, CDP, in collaboration with the Food and Agriculture Organization of the United Nations (FAO) and the European Union, is set to launch the TERRA program. This initiative aims to provide support for lending to agrifood micro, small, and medium enterprises (MSMEs) in Africa and Turkey, backed by an EU guarantee of up to €109.5m, with FAO offering technical assistance to local lenders.
Previously, in March last year, CDP was reported to be endorsing Italy’s fund with an initial investment of €1bn ($1.09bn) to advance artificial intelligence (AI) initiatives.
The original article, “CDP opposes Nexi’s sale of majority stake in digital banking unit to TPG,” was initially published by Retail Banker International, a brand owned by GlobalData.
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