Elliott Boosts Banca Sistema Stake to 85.7%

Banca CF+, backed by funds managed by Elliott Investment Management, has solidified its control over Banca Sistema, reaching an 85.7% ownership stake following the conclusion of a mandatory takeover bid. This strategic move marks a significant step in Elliott's plan to integrate and expand its presence in the Italian financial services sector, particularly focusing on corporate lending and specialized credit solutions.

The mandatory offer, which concluded on June 12th, saw additional acceptances representing 4.922% of Banca Sistema's share capital. This brings Banca CF+'s total holding to 85.674% of the voting rights. The offer's consideration included a cash component of €1.432 per share and a portion of 0.458 euros in shares of Kruso Kapital, or an equivalent cash alternative. Payments to participating shareholders are scheduled for June 22nd.

To support this consolidation, Banca CF+ has secured an €82.8 million capital increase, fully committed by European Investments Holding Company sarl (EIHC), the holding entity for Elliott's funds. EIHC has already injected €75 million as an advance on future capital contributions and pledged to subscribe to its full entitlement, underscoring Elliott's deep commitment to the venture. This capital injection is crucial for bolstering Banca Sistema's financial foundation as it integrates into a broader banking platform.

This latest capital raise follows previous strengthening measures by Elliott. Prior to the initial voluntary takeover bid, which successfully secured over 70% of Banca Sistema, Banca CF+ had already enhanced its capital base. These earlier initiatives included a €40 million Additional Tier 1 bond issuance in November 2025 and a €16.6 million capital increase finalized in January. These actions demonstrate a consistent strategy to fortify the entity before and after the significant ownership consolidation.

The financial health of the combined entity is supported by robust performance metrics. Banca CF+ Group, led by CEO Iacopo De Francisco, reported a consolidated net profit of €24.2 million for the fiscal year ending December 31, 2025. The group's net equity stood at €176.9 million, with total assets reaching €2.263 billion, providing a solid base for future growth and strategic initiatives within the Italian banking market.

Elliott's overarching objective is to establish a new banking hub specializing in business credit. By merging Banca CF+'s expertise in factoring, tax credit acquisition, and specialized lending with Banca Sistema's established operations, the firm aims to create a more comprehensive and competitive financial institution. This strategic integration is particularly relevant in a market where specialized financial services for businesses are increasingly in demand, driven by evolving economic conditions and the need for tailored credit solutions.