UniCredit’s BOV share sale to Hili Group was 'mutually beneficial,' chair says
Bank's second largest shareholder sold half its stake earlier this month
UniCredit’s sale of half its stake in BOV to Hili Group was a 'mutually beneficial' deal that suited everyone involved, BOV chair Gordon Cordina said on Thursday.
Earlier this month, Times of Malta reported that UniCredit, BOV’s second-largest shareholder, had reduced its shareholding in the bank to 5.2%, down from 10.2%.
The mystery buyer was later revealed to be local business group Hili Ventures, which said the deal was “aligned with Hili Ventures’ objective to expand its asset management division”.
While the overall cost of the sale has not been disclosed, it is estimated to be in the region of €59m.
When asked about the deal’s impact on BOV, Cordina said it was “a deal between two shareholders over which the bank had no say”.
However, he added, the deal was ultimately to everyone’s benefit.
“UniCredit is looking towards investing in banks in which it can exercise a larger degree of control,” Cordina said.
Meanwhile, BOV “welcomes the new investors as a vote of confidence in the bank,” he added.
Cordina also commented on local competitor HSBC, saying that nobody stood to benefit from the protracted negotiations for the bank's sale.
“The sooner the matter is brought to a conclusion in a way that helps the reputation of the financial sector and the country, the better for the economy and for the bank,” Cordina said.
Cordina was speaking at the launch of the bank’s half-yearly results, which showed the bank recording a profit before tax of €135.1m.
This was almost a 9% dip from the €148.2m recorded during the same period last year. Meanwhile, the bank’s operating income rose to €244m, with its balance sheet now reaching €15.9b.
BOV CEO Kenneth Farrugia said the bank was reporting “strong results, especially when one considers the uncertainty at the geopolitical level”.
The bank also announced a gross dividend of €55m at €0.0856 per share.