Fidor Bank has deleted all references to the planned sale to financial investor Ripplewood from its website. Just a few days ago, the homepage of the Munich-based challenger bank had stated that Fidor’s French parent BPCE had “initiated the sale to Ripplewood.” In addition, the private equity firm was already dubbed as the “new parent company”, furthermore, it was said that the transfer of Fidor to Ripplewood would “probably be completed in the course of 2022.” All of these references could no longer be found on Sunday evening. Instead, the Fidor website only stated tersely at the relevant point: “The parent company and sole shareholder of the bank is the French Groupe BPCE.”
Statements made by a close acquaintance of Fidor Bank, who said that the planned sale to Ripplewood had finally failed, fit in with these events. However, we do not have a second source for this claim. A BPCE spokesman, whom we had tried to contact by e-mail on Sunday afternoon, did not respond at first. It had been the same last week when Finanz-Szene had exclusively reported on the departure of Fidor CEO Boris Joseph.
Read more about Fidor Bank and the Ripplewood deal, and find the latest financial headlines with our companion app Born2Invest.
In 2021 BPCE has again injected capital into Fidor
How it goes on with Fidor is completely unclear. Two years ago, BPCE – which is the umbrella institution of the French Volksbanken and Sparkassen – announced the split of the Munich-based startup bank it acquired in 2016. The IT business was sold to French technology group Sopra Steria, while the banking business was to go to Ripplewood. However, research by Finanz-Szene then revealed earlier this year (see here and here) that the announced transaction had never been completed. Already at that time, BPCE did not want to comment to Finanz-Szene. In April however, the French confirmed the sales intention opposite the “Börsen-Zeitung”.
Also at the beginning of this year financial scene had disclosed the whole extent of the operational disaster with Fidor. Thus, after losses of $35.01 million (€35 million) (2016), $110.03 million (€110 million) (2017), $41.01 million (€41 million) (2018), and $63.02 million (€63 million) (2019), another $121.03 million (€121 million) had been added in the 2020 financial year. Fidor has not yet published financial statements for 2021. However, BPCE admits in its own annual report, that one had to form an additional $38.01 million (€38 million) of risk provisions at Fidor in the past year and also injected another $28.01 million (€28 million) of capital. All in all (a purchase price of roughly $100.02 million (€100 million) was due at one point), the Fidor adventure has probably cost the BPCE Group a very, very roughly estimated half a billion euros so far.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in finanz-szene.de a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Services Gain Ground in the Post-Covid Recovery
In the post-Covid recovery, the services sector is leading the charge, with recent data showing +4.8% growth above pre-pandemic levels....
Private Sector Firms May Qualify for Attractive Tax Incentives With Certain Types of Redevelopment Projects
Private Sector Firms May Qualify for Attractive Tax Incentives With Certain Types of Redevelopment Projects. Generally, these projects are so-called...
A Great Deflation Will Divide Europe and the U.S., J.P. Morgan
J.P. Morgan analysts have noted an impending deflation. However, they say the impact will be uneven, leaving some countries better...
The Iberian Gas Pipeline Seeking to Disconnect the EU From Russian Energy
As the EU seeks to reduce its dependence on Russian energy, Spain has come forward with a gas pipeline proposal...
The Impact of Home-Grown Cannabis On the Brazilian Cannabis Industry
In Brazil, producing small quantities of home-grown cannabis is authorized. But how big is its impacts on the commercial cannabis...
Cannabis2 weeks ago
Why Tilray Shares Rose This Friday Morning
Featured2 weeks ago
Depression, or No Depression; That Is the Question
Biotech1 week ago
Experience of Covid-19 Rapid Tests Opening the Door to a Medicine of the Future?
Cannabis1 week ago
New Research Shows CBD Relieves Severe Anxiety in Young People