(Alliance News) - doValue Spa announced Thursday that it has entered into a non-binding agreement with Elliott Advisors Limited and Tiber Investments Sàrl, a company related to funds managed by EAUK, identifying key terms for a potential aggregation with Gardant Spa.

Based on this agreement, the company writes, "negotiations will proceed from today on an exclusive basis, with the objective of finalizing a binding agreement for the potential transaction with Gardant."

"This strategic step is part of the process of consolidation and redefinition of the non-performing receivables management business, as outlined in our newly disclosed 2024-2026 business plan," the company further specifies.

The transaction potentially involves the acquisition of 100 percent of Gardant by doValue -- together referred to as a "new group" -- and would allow doValue to further strengthen its position in NPE management in Italy together with strong strategic partners.

"The transaction under negotiation," adds doValue, "enhances the industrial and synergistic potential of the new group with an expected increase in Cash EPS, cash generation and financial strength, strengthening its balance sheet. In addition, doValue is planning to refinance all or part of its issued debt."

The new group is expected to achieve a Net Financial Position/Ebitda ex NRI ratio of about 2.0x by 2025 due to its growth profile, cash generation and capital increase.

Gardant, the statement said, boasts a comprehensive offering of credit management services across the entire value cycle, concentrated in Italy, with about EUR40 billion in assets under management of which about EUR20 billion are managed through special servicing and about EUR500 million in funds under management through its asset management company dedicated to alternative assets, Gardant Investor SGR."

doValue trades in the green by 3.9 percent at EUR1.96 per share.

By Chiara Bruschi, Alliance News reporter

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