UniCredit to sell 17 percent of its stake in online broker FinecoBank

by   |  VIEW 292

UniCredit to sell 17 percent of its stake in online broker FinecoBank

The biggest bank of Italy in terms of market cap, UniCredit, had issued a statement on Tuesday, the 7th of May, saying that they had launched a sale of its 17 percent stake at online brokerage firm, FinecoBank, as the Italian lender had been exploring options to pivot its financial strength.

UniCredit holds about 35.35 percent stake on FinecoBank, which has a market value of $2.7 billion (2.4 billion euro) and a booking value of 981 million euros. Earlier on the European trading session on Tuesday (May 7th), the Italian lender headquartered in Milan, had announced its possible stake sale on FinecoBank and at the later part of the data, it had set off the sell-off process with other investors.

According to the company, the latest sell-off of its stake in FinecoBank had been a part of its asset disposal program to ensure that the bank could meet a target of residing at an upper end of a 200-250 points core capital buffer, while a reading below would be violating regulatory requirements.

The latest sell-off may have been necessary for the Milan-based lender, as the bank had taken a couple of heavy hits over the recent past, as it took a tumble on its Turkish assets amid a tumultuous Turk economy last year alongside it had to pay a lofty sum to Washington to settle an Iran dispute, ending 2018 with a critical curb in its core capital ratio, down to 12.07 percent from 13.60 percent a year earlier, suggested multiple analysts.