Nexi, here’s how and why Mercury’s funds toast

Nexi, here's how and why Mercury's funds toast

Mercury, a vehicle of the Bain Capital, Advent and Clessidra funds, sold 8.8% of Nexi's capital, forfeiting a substantial capital gain in the wake of some rumors. Facts, numbers and reconstructions

Nexi swooped into the stock market yesterday.

Here's what happened yesterday to the Nexi stock in Piazza Affari after the sale of about 55 million shares, equal to 8.8% of the capital by Mercury UK Holdco, vehicle of the private equity funds Bain Capital, Advent and Clessidra .

All the details.


The placement (Barclays, Goldman Sachs and HSBC acted as the global coordinator and bookrunner of the operation) took place at a price of 14.2 euros, with a 7.2% discount compared to Tuesday's closing at 15.305 euros, for a total of 781 million euros.

Mercury UK, the first shareholder of Nexi, retains 43.4% of the capital of the company active in electronic payments.


Bain Capital, Advent and Clessidra could further reduce their equity stake to 33.5% next July. In fact, the company led by Paolo Bertoluzzo, Il Sole 24 Ore recalls, should get the go-ahead at the closing of the transaction for the purchase of the merchant acquiring (the POS of the stores) from Intesa Sanpaolo, to which 9.9 is intended % of Nexi.


Mercury UK Holdco's second transfer of shares this year was the past few hours: in January, Bain Capital, Advent and Clessidra had sold 7.7% of the company through accelerated bookbuilding.


If the sale, on the one hand, could only represent the desire by the Bain Capital, Advent and Clessidra funds to monetize the participation in the company, on the other, Il Sole 24 Ore speculates, it could be preparatory for a merger with Sia (the transaction would give light to a single major Italian reference point for fintech and innovative payments).

According to the indiscretions of the financial newspaper, the talks between the various protagonists of the operation, including CDP, have already been started, through advisors JP Morgan, Mediobanca and Bofa Merrill Lynch. On the other hand, it has been clear for a long time the project in the home of Cdp (group controlled by the MEF) to create a sort of national champion of the sector with a European breath as well.


There are also those who notice correlations between news, numbers and sales. Significant this reconstruction of Mf / Milano Finanza published today: “On Wednesday 20 May the Nexi title was worth 13.75 euros. Thursday 21 May rumors of new talks for a possible marriage with Sia (which periodically return to circulation) brought the shares to € 14.8. On Friday 22 May other sources close to the dossier actually reported a slowdown in activities to achieve a combination between Nexi and Sia, a slowdown due to EU Antitrust procedures on the acquisition by Nexi of Intesa Sanpaolo's merchant acquiring activities. In the meantime, the rise in the share has reached € 15.68 on Monday 25 May with the capitalization passing from 8.62 to 9.48 billion in a few sessions. Tuesday 26 May Mercury Uk. company owned by the private equity funds Bain Capital, Advent and Clessidra, which is the largest shareholder of Nexi, sold 55 million shares (8.8% of the capital) to institutional investors at an price of 14.2 euros through accelerated bookbuilding per share (781 million), reducing its stake to 43.4%. The sale price incorporates a 7% discount compared to the closing date of May 26 and in fact the Nexi stock yesterday aligned itself with the value of the transaction and closed down 7.84% to € 14.1. Compared to the closing of May 20, however, 8.8% sold to 14.2 euros guaranteed 26 million more ".


As if to say that in a few days, thanks to the growth of the Nexi stock on the stock exchange, even in the wake of a Bloomberg launch, the funds with the sale of a slice of Nexi have forfeited a capital gain of a few tens of millions.

This is a machine translation from Italian language of a post published on Start Magazine at the URL on Thu, 28 May 2020 13:35:51 +0000.