Coup de grace

9 February 2021 By Christopher Thompson Follow @CGAThompson

Mutual BPCE has made a 3.7 bln euro offer for the 29% of the French lender it doesn’t own. Doubling down on the misfiring investment bank looks bold. However, a lowly valuation and potential trading rebound mean CEO Laurent Mignon will still bag a sweet deal if he pulls it off.

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French bank BPCE has launched a 4 euro per share cash takeover offer for the remaining 29.3% stake in Paris-listed Natixis it does not already own, according to a company statement on Feb. 9.

The offer, which also includes a proposed 6 cents dividend, values the stake at 3.7 billion euros and equates to a 66% premium to Natixis’ average share price over the last 180 trading days, according to the company.

BPCE said plans to delist the company would give it greater “strategic flexibility”. It plans to group its asset management division and investment bank under a new unit called “global financial services” serving large businesses.

After reporting two quarterly losses Natixis Chief Executive Francois Riahi left the group last August citing "strategic differences". He was replaced by Nicolas Namias, head of group finance and strategy at BPCE. Namias has previously played down reports that BPCE might buy the rest of Natixis.

Natixis' asset management unit is highly exposed to the U.S. market and would be a logical disposal candidate for BPCE, according to a Reuters report on Feb. 9 citing anonymous sources.

Shares in Natixis – which was listed on the Paris stock market in December 2006 at a price of 19.55 euros – were suspended on Tuesday ahead of the statement.

The stock closed up by 6.9% on Feb. 8 at 3.70 euros.

Context News

French bank BPCE has launched a 4 euro per share cash takeover offer for the remaining 29.3% stake in Paris-listed Natixis it does not already own, according to a company statement on Feb. 9.

Natixis' asset management unit is highly exposed to the U.S. market and would be a logical disposal candidate for BPCE, according to a Reuters report on Feb. 9 citing anonymous sources.

Shares in Natixis – which was listed on the Paris stock market in December 2006 at a price of 19.55 euros – were suspended on Tuesday ahead of the statement.

The stock closed up by 6.9% on Feb. 8 at 3.70 euros.

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