, the fintech platform, confirmed on Tuesday that it has reached an agreement with an Italian banking group.){kind=link}
Supply@ME will acquire 10% of a fintech bank owned by the unnamed Italian banking group
Supply@ME (LON:SYME), the fintech platform which provides the ‘Inventory Monetisation’ service to manufacturing and trading companies, confirmed on Tuesday that it has reached an agreement with an Italian banking group.
The agreement has two specific conditions. Firstly, a commercial agreement to manage both the origination of new client companies and a multi-annual inventory funding plan. And second, the execution of a first inventory monetisation transaction involving a portfolio of Italian client companies.
Upon completion of the above arrangements, Supply@ME will acquire 10% of a fintech bank owned by the Italian banking group. This will allow Supply@ME to avoid the need for regulatory approval and will have the option to acquire an additional 10% of the fintech bank within the next two years.
The name of the fintech bank, which was valued at €34m – €50.6m, cannot be disclosed “due to the strategic nature of the transaction”, the company revealed today.
Alessandro Zamboni, SYME CEO, made further comment on the agreement:
“I am delighted to announce this agreement as a cornerstone of our inventory funding strategy. We can now begin to structure the monetisation of the first group of Italian client companies. This is a key initiative for Supply@ME and we expect that it will serve as the basis for an ongoing and scalable inventory funding programme for Client companies, starting in Italy. We believe that this will also provide further confidence to investors who have been awaiting the news of our first monetisation,” said Zamboni.
“We expect the agreement will create additional value for the Company, given the opportunity to invest directly in a Fintech Bank whose portfolio will grow as Supply@ME completes further rounds of monetisation. This transaction reinforces the positioning of SYME as an innovative fintech business, via non-credit transactions, aimed at assisting with the working capital needs of SMEs and large corporates.”
The Supply@ME share price is up by 6.69% on Tuesday to 0.38p.