The European Central Bank approved Ion Group’s request to buy a significant stake in a small Italian bank, allowing the services group owned by Andrea Pignataro to take a “qualifying holding” in the banking industry for the first time.
(Bloomberg) — The European Central Bank approved Ion Group’s request to buy a significant stake in a small Italian bank, allowing the services group owned by Andrea Pignataro to take a “qualifying holding” in the banking industry for the first time.
Ion was authorized to build up a stake in Cassa di Risparmio di Volterra SpA earlier this month, according to people familiar with matter who asked not be named discussing a confidential decision. The Tuscan lender has about €2.1 billion ($2.3 billion) in assets.
Ion can now buy as much as 32% of the bank and plans to remain a minority shareholder, one of the people said. Investors or companies seeking to acquire stakes above certain thresholds in a European bank need to get approval from the ECB, which oversees lenders in the region. Among the watchdog’s criteria are whether the buyer is of good repute and has continued financial strength.
Spokespeople for the ECB and Ion declined to comment. A representative for Cassa di Risparmio di Volterra wasn’t immediately available to comment.
As of the end of 2022, Fondazione Cassa di Risparmio di Volterra owned 75% of the bank and Credit Agricole Cariparma SpA had a 20% stake, according to the latest annual report.
Pignataro has grown Ion Group over the last two decades with a string of acquisitions, funded largely through leveraged loans. In recent years, he has focused on Italy with the purchase of financial services firms Cedacri and Cerved.
Ion has also been in talks for months with owner Davidson Kempner and potential lenders for the acquisition of Prelios, a Milan-based loan servicer. The firm also owns a 9.4% stake in Illimity Bank SpA.
Bloomberg LP, the parent company of Bloomberg News, competes with Ion to provide financial software and data.
–With assistance from Alessandro Speciale.
(Updates with list of existing shareholders in fifth paragraph.)
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