Nexi's (NEXI.MI) share price jumped more than 4% in early morning trading in Milan after Italian state-backed investor CDP Equity on Monday announced plans to increase its stake in the payments group to as much as 29.9%.
To execute the increase, the CDP Equity board approved a strategy to gain exposure to up to 8% of Nexi through derivative contracts that could later be converted into shares, subject to regulatory approvals. The investor may also acquire additional Nexi shares directly on the open market.
CDP Equity clarified that it does not intend to launch a tender offer for Nexi, describing the move instead as a sign of confidence in the company's "strong innovative and industrial growth." The investor highlighted Nexi's role in processing over 1.8 trillion euros in digital transactions across more than 25 countries, adding that the group could play "a key role in the European development of a technological infrastructure supporting the digitalization of money."
CDP Equity currently owns 19.14% of Nexi. According to the company's website, its largest shareholder is US private equity firm Hellman & Friedman, which holds a 22.23% stake.
Separately, the payments company has continued to attract interest from private equity company CVC Capital Partners (CVC.AS). London's Financial Times reported in late April that CVC was considering a 9 billion-euro takeover offer for Nexi. If pursued, it would be CVC's third attempt at purchasing the payments company.
Mediobanca Banca di Credito Finanziario, JPMorgan and PricewaterhouseCoopers Business Services are assisting CDP Equity as financial advisers for the deal, which remains subject to regulatory clearances.
