UniCredit to double stake in Greek bank Alpha Services
UniCredit SpA (UNCRY) announced that it has entered into financial instruments with primary investment banks relating to a circa 9.7% stake in Alpha Services and Holdings S.A. (ALBKY), at a price embedding a discount versus previous closing share price. Physical settlement under the new financial instruments may only occur after the required regulatory approvals have been obtained. Together with the 9.6% currently held, UniCredit overall positions in Alpha will total c. 20%, allowing to equity consolidate and therefore better reflect the positive contribution of the strategic partnership. UniCredit will submit all the required regulatory filings for acquiring a stake in Alpha above 10% and up to 29.9%. The transaction will generate an additional net profit of c. EUR 180M per year, which UniCredit will return to its shareholders in line with its distribution policy. The completion of the transaction is expected to occur within the end of 2025. It will have an impact of c. 40bps on UniCredit CET1 ratio, with an as-is return of the investment of c. 16%, which is anticipated to improve thanks to the initiatives that are being pursued in the partnership.
