Unicredit: 26% stake to F have impact of c. 65bps on CET1 ratio

Unicredit: 26% stake to F have impact of c. 65bps on CET1 ratio

UniCredit Spa has further increased its stake in Commerzbank, raising its equity holding to approximately 26% after converting more of its synthetic positions into physical shares. This move positions UniCredit as the German bank's largest shareholder, surpassing the German government's holding [2]. The conversion of the remaining synthetic positions will bring the total equity holding to around 29% [1].

The impact on the Common Equity Tier 1 (CET 1) ratio for the approximately 29% stake has increased from around 110 basis points to about 145 basis points. This change is due to the rise in Commerzbank's share price and the restructuring of the collar derivative hedge aimed at reducing future income statement volatility [1]. The return on investment remains confirmed at around 20% [1].

UniCredit stated that it does not intend to seek board representation at this time but will continue to closely monitor Commerzbank's progress in sustainably strengthening its business and creating value for its shareholders, clients, and employees [1]. The Italian bank reiterated that its investment has exceeded predefined financial metrics, thereby generating significant value for UniCredit shareholders [1].

The 26% stake in Commerzbank is valued at about €10.7bn ($12.5bn) based on last Friday’s market close [2]. UniCredit CEO Andrea Orcel has indicated a potential wait until 2027 before considering a full takeover offer, citing challenges from a stock rally and government opposition [2]. A German government representative reiterated opposition to UniCredit’s actions, asserting that Berlin "rejects UniCredit’s renewed uncoordinated and unfriendly action" [2].

References:
[1] https://www.marketscreener.com/news/unicredit-increases-stake-in-commerzbank-to-26-through-further-share-conversion-ce7c50dbd189f322
[2] https://www.retailbankerinternational.com/news/unicredit-increases-commerzbank-stake-2/