The board of directors of Monte dei Paschi di Siena (MPS) has approved an increase to its offer for Mediobanca, introducing a cash component of €0.90 per share. The group has also communicated its decision to waive the 66.67% acceptance condition that was previously a prerequisite for the offer’s validity. The mandatory 35% threshold, however, remains confirmed.
This cash enhancement, which will cost MPS approximately €750 million, increases the valuation of Mediobanca shares to €20.776. This figure is the sum of the share-based consideration of €19.876—based on the valuation of MPS shares as of August 29th—and the new cash consideration of €0.90. The revision of the tender offer (OPAS) effectively eliminates the discount at which the Monte’s offer had been trading on the market in recent sessions.
The MPS board stated it is “firmly convinced that the increase in the consideration represents further concrete evidence of the industrial value of the operation and of the bidder’s attentiveness to the market, with the aim of maximizing acceptances and accelerating value creation.”
MPS confirms that the offer for Mediobanca will conclude on September 8th, a deadline that remains unchanged following the decision to launch the cash raise.